posted at 07:50
Author Name: Myles Udland and Reuters
Swiss Voters Reject Gold Referendum
Swiss voters rejected two closely watched referendums on Sunday that would have forced the central bank to buy up massive amounts of gold and introduced strict new limits on immigration, in a result that could bolster its economic ties to the European Union. Proposed by the right-wing Swiss People's Party out of concern that the Swiss National Bank has already sold too much gold, the measure would have compelled the SNB to boost its gold reserves to 20% from around 8% currently. Switzerland already holds the most gold per capita in the world. An initial analysis of the voting trend from Swiss broadcaster SRF showed voters were likely to have turned down the "Save our Swiss gold" initiative. If Swiss voters had approved the measures, it would have severely complicated policy at a time when the central bank is trying to defend a 1.20 euro cap on the Swiss franc imposed at the height of the euro crisis. Over the last several months, the price of gold has been declining sharply, with the precious metal currently near mu tli-year lows. On Sunday morning, gold futures weren't trading, but futures settled at around $1,165 an ounce on Friday, their lowest since hitting around $1,150 earlier this month, which was gold's lowest level since 2010. Rejection of the measure, while not a huge surprise, likely comes as a relief both to Swiss and European monetary policy makers, who are currently facing a lack of inflation, poor economic growth, and record-low bond yields on the continent.

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