A “yes” vote on an upcoming Swiss referendum would support gold prices while a “no” vote would be neutral, says HSBC. This weekend, Swiss voters go to the polls for a referendum that would mandate the Swiss National Bank hold 20% of its assets in gold, among other measures. Should it pass, the central bank would have to purchase 1,500 metric tons of gold over five years and this would “give bullion a significant morale boost,” HSBC says. The amount of gold would be roughly equivalent to all of China’s gold consumption in 2013, the bank adds. “The impact of a ‘yes’ vote could quickly translate into prices and take gold as much as USD50/oz higher, we believe,” the bank says. However, a “no” vote is broadly expected, based on polls, thus this outcome would be unlikely to significantly impact gold prices, HSBC says.
