Swiss poll distracts gold market, but not for long

Singapore

EVEN as five million Swiss nationals head to the polls on Nov 30 to vote on a proposal that would force the central bank to increase its gold reserves, an economist has likened gold to "shiny Bitcoin", saying that the initiative makes no sense.

If passed, the proposal - closely watched in the gold and foreign currency markets - could provide a short-term fillip to the gold price that has been on a downward trend this year. Many, however, are expecting a "no" vote, as support for the proposal falls in opinion polls, and the central bank chairman calls it a "dangerous" initiative.

The "Save our Swiss Gold" initiative by the right-wing Swiss People's Party is aimed at banning the central bank from offloading its gold holdings. Th…