thank you swiss national bank for $2000+ gold, page-2

From Reuters:

"All in all, Switzerland is now on a quantitative easing policy in the foreign exchange markets," said Peter Fertig, a consultant for Quantitative Commodity Research. "If the Swiss franc is no longer a preferred safe haven due to intervention by the SNB, it will have (a positive) impact on the demand for gold."

Much of gold's rise this year - it is currently up 34 percent since January, on track for its largest yearly gain since 1979 - has been fueled by cheap cash, provided chiefly by Western central banks battling debt piles large enough to derail global growth.

Even without the SNB, the deterioration in the euro zone debt crisis and the U.S. economy's inability to create a single job last month had already prompted many analysts to upgrade their gold price targets this year.

The $2,000 mark is now coming clearly into view -- though its sustainability at that level is unclear.

"$2,000 is just another number. There is no reason why it can't go through that, can't go a long way through that," said Natixis strategist Nic Brown.

"This explosion in liquidity creates demand for gold and creates the perception for gold prices to go higher," he said. "But ultimately, this is a bubble fueled by liquidity."

Adjusted for inflation, gold already hit $2,000 an ounce in October 1980. In 1980s money, Tuesday's record high gold price of $1,920.30 an ounce is only worth $720.

But its rally is impressive nonetheless, with the metal set to end September with its twelfth quarterly gain in a row, its longest such winning streak in at least 30 years. Switzerland's move is just the latest piece of supportive news for the metal.

"I think gold is headed for $2,000. In theory, this could happen in a matter of days," said Frank McGhee, head of precious metals trading at Chicago's Integrated Brokerage Services.

"In reality, if this type of intervention action was taken and was ultimately seen to be ineffective, then the market will get new strength from that."