Market News
Gold price surge adds shine to Swiss National Bank profit - REUTERS
Summary
- SNB makes 14.33 billion franc profit from gold valuation gain
- Gold prices have risen by more than 50% in 2025
- Gold seen as ultimate safe haven, hedge against uncertainty
ZURICH, Oct 31 (Reuters) - The Swiss National Bank reported a third-quarter profit of 27.93 billion Swiss francs ($35.22 billion), the central bank said on Friday, helped by the booming value of its gold reserves.
The central bank posted a valuation gain of 14.33 billion francs on its gold holdings between June and September, up from the 4.41 billion franc gain on the precious metal last year.
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The gain was significantly more than the average quarterly profit the SNB has made from its gold holdings over the last 10 years, which was less than 2 billion francs, according to UBS calculations.
GOLD GAINS FROM SAFE-HAVEN DEMAND
The SNB, with unchanged gold holdings of 1,040 metric tons, has benefited from gold prices, which have risen by 53% this year as investors hedged against increased political and geopolitical uncertainties.
The weakening U.S. dollar has also made gold cheaper for holders of other currencies, boosting demand, while rate cuts by the U.S. Federal Reserve have reduced the yield from other less risky assets like U.S. Treasuries, making gold more attractive.
During the third quarter, the SNB also reported a gain of 13.63 billion francs from its foreign currency positions, the bonds and stocks it has bought with foreign currencies it has purchased.
