 Hello, welcome to this week's CMC Markets Commodity Snapshot with myself Jasper Lawler. This week we're going to be looking at gold and it's particularly interesting at the moment just because we are seeing a bit of a flight to safety because we've just witnessed the Swiss National Bank remove their peg of 120 against the euro and so we're seeing about a risk aversion going on in markets at the moment and a big question mark over the influence of central banks. Now quickly looking at this Swiss franc trade this is obviously largely in the past and entering in the market at this point it's highly volatile there's some profits to be made but in terms of forecasting pretty difficult that the move has essentially already taken place you can see on the chart here that we've had this taken place at 120 you can see the price has been largely flat for about four years and only today have we seen this calamitous drop would fall and past its multi-year lows in the kind of moves that you do not see in currency markets on a day-to-day basis though the euro Swiss franc was down at one point over 30% and could be again so then looking at that chart in the Swiss franc why is there such demand for Swiss francs we've actually seen alongside removing the peg the Swiss National Bank have introduced a negative interest rate of minus 0.75% so why would you have your money in Swiss francs when you're actually going to be earning negative interest on it well the reason is because it's a safe haven in times of turmoil in fact this move today has introduced a bit of turmoil into markets Swiss francs have been used as a funding currency for buying higher yield or assets Switzerland is obviously a major financial center so there is going to be some ramifications for this and so in that time of need for a safe haven what better place than gold gold obviously is immune to the kind of actions that we've seen from the central bank today there is no central bank for gold so that's why we've started to see a move higher in gold today and we're going to have a look at the chart now just to see if that could be so sustained so what we're looking at now here is with gold having made is plunged down towards $1,130 per ounce it's recovered largely since and been a bit of a sideways kind of range but we've seen a bit more positivity recently and we've just broken through this downward sloping trend line and we've broken beyond this 1240 mark which was the previous peak so then looking forward if this play towards a safe haven in gold which we've also seen safe haven played towards the US dollar we've also seen it to the Japanese yen if that follows through and keeps going into to gold then we could be looking at a retest of this larger downward sloping trend line with a resistance perhaps around this 1270 mark and should that break we could be looking at a retest of the July high which is around $1,340 per ounce so that's a wrap for this week's CMC markets commodity snapshot we're of course looking at the Swiss frame can look in simplifications for gold so we've got to keep an eye out on how the Swiss National Bank act going forward a lot of a lot of other reason for their actions is the ECB so we have to look at what they do in their January 22nd meeting and we need to watch and see whether gold can break through this next declining trend line