Saxo Group Videos

Gold bugs buzzing as the yellow metal soars

The level hasn't been seen since last August. But in an ongoing response to the Swiss Bank's decision to remove the Swiss franc's ceiling against the Euro, gold has reached new highs this Tuesday.

Saxo's Ole Hansen says there are other factors at play here including Thursday's ECB meeting and Sunday's Greek election. But the belief that central banks are the providers of market stability has been seriously questioned.

Hansen says investors are using the precious metal as a safe haven bet as well as a hedge against negative interest rates and deflation. He says looking at the options market you can see the increased market risk has led to a jump in implied volatility. Since October money managers have bought 240 tons of gold.

So how long will this gold rally last? Hansen says at least until Sunday but possibly longer.

02:53 minutes
Tags: commodities, commodity, commodity market, commodity prices, commodity strategy, commodity trade, commodity trading, dollar, draghi, draghi ecb, draghi options, ecb, ecb meeting, ecb policy, ecb president, euro, euro area, euro zone, europe, european, european central bank, european economy, eurozone, forex, forex market, forex markets, forex trading, gold, gold bars, gold bullion, gold buy, gold buying, gold commodities, gold commodity, gold confidence, gold demand, gold dollar, gold exchange, gold future, gold investing, gold investment, gold levels, gold long, gold market, gold predictions, gold price, gold prices, gold resistance, gold spot, gold support, gold trade, gold trading, gold trading levels, goldprice, greece, greek election, hedge, hedge fund, hedge funds, hedging, interest rates, negative, negative interest rates, negative rates, options, options market, qe, quantitative, quantitative easing, saxo, saxo bank, saxo tv, swiss, swiss bank, swiss currency, swiss franc, swiss national bank, swissfranc, switzerland, trading, tradingfloor.com, usd, yellow metal

Switch to