Gold Shares to Gain on Pegged Swiss Franc, Collins Stewart Says
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Gold shares may rise after the Swiss central bank set a minimum exchange rate for its currency, a rival to gold as an investor haven, Collins Stewart Plc said.
“The move effectively pegs the Swiss Franc against the euro and now removes one of gold’s competitors as a safe haven asset,” Collins Stewart said in a note today. “This further strengthens the buying case for gold and in particular gold equities that have underperformed the commodity in the last year,” it said, citing African Barrick Gold Plc and Centamin Egypt Ltd. as the cheapest among U.K.-based gold miners.