Comments from Swiss National Bank policymaker Danthine in Le Temps:
- Referendum on gold holdings fundamentally questions SNB framework
- The big SNB balance sheet means diversification limits, some markets are simply too small
- Don’t think now is the opportune time to cut SNB’s balance sheet
The referendum will be a big story in the gold market in the month ahead but the final comment is an interesting one because it’s rare for the SNB to even entertain the idea of cutting its balance sheet. The only way they could do that would be to abandon the EUR/CHF floor.
