Intervention by SNB Still a Threat

Continue to look for more weakness in the Swiss Franc. On Friday theSwiss National Bank reiterated its stance for a weaker currency. Theovernight weakness in the Euro could help make an intervention easierfor the SNB.

Continue to look for more weakness in the Swiss Franc. On Friday the Swiss National Bank reiterated its stance for a weaker currency. The overnight weakness in the Euro could help make an intervention easier for the SNB.

The developing weakness in the Euro Zone economy is threatening to push the Swiss Franc higher relative to the Euro which may trigger aggressive intervention action by the Swiss National Bank.

June Gold could rally sharply higher if the SNB intervenes again. The potential move could be a big one, perhaps as much as $50 depending on how aggressive the Swiss National Bank decides to be. July Silver is likely to piggy-back a rally in gold.