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The price of gold sank after Swiss voters rejected a measure in a November 30 referendum there that would have forced the country's central bank to more than double its gold holdings.
Gold bugs were hoping for a âyesâ vote after it was touted that such a move could boost prices by $50 per ounce.
Immediately after Swiss voters rejected the measure, gold futures fell as much as 2.1% to US$1,142.88 an ounce, the lowest level since November 7.
On Monday, however, gold prices saw a massive turnaround from their three-week low, with the price of silver following suit.
Gold futures settled up US$42.60, or 3.6%, to US$1,218.10 an ounce - a one-month high. Silver rose 6.9% to US$16.47 an ounce, having earlier rallied as much as 8.8 % to a peak of US$16.76.
Analysts said that the metals were oversold at the end of last week, adding that Indiaâs unexpected move to ease curbs of gold imports and the rally in oil prices had both proved bullish for the price of gold.
