The Alternative Bank Schweiz (ABS) caused shockwaves with a letter sent to all clients in mid-October informing them that it would begin imposing interest charges on deposits in 2016.
For current accounts, the bank said it would impose a -0.125-percent rate, while slapping a -0.75-percent rate on client deposits higher than 100,000 Swiss francs ($98,650, 92,420 euros).
The -0.75 percent rate is meant to dissuade foreign investors buying and holding Swiss francs as a safe haven investment, which had been putting upward pressure on the currency.
Was a December FED hike been priced in last week?
Meanwhile, Jack Chan observes:
Since identifying the top a few weeks ago, we expected a new low in gold but did not expect a spike down. Spikes are seldom sustainable, therefore, a recovery rally should begin anytime.
Current COT data is now near levels of previous bottoms, expect a recovery rally to begin anytime.
Main St. Predominately Bearish On Gold While Wall St. Sentiment Remains Mixed
Adrian Day of Adrian Day Asset Management mirrored Gero’s thoughts in that the Fed rate hike is now priced in and may be positive for gold.
“It removes this Sword of Damocles hanging over the market, and it is very clear that there will not be a rapid series of aggressive rate hikes; one tiny increase is meaningless for gold, whereas the constant threats have weighed on the metal,” he continued.
Edited by Rogerdodger, 23 November 2015 - 09:17 AM.