On Sunday, 78% of Swiss voters vetoed the idea that the Swiss National Bank should buy enough gold to get it to 20% of the monetary base.
This outcome had been predicted for weeks. There would be no big purchase of gold. Gold’s price fell.
On Monday, gold soared by $44.
Reason: “Sell on the rumor. Buy on the news.”
The idea that the SNB would not buy gold pushed gold’s price down. As soon as it was clear that the SNB would not be compelled to buy gold, it was old news. The shorts started covering as soon as the market opened.
