Goldman Sachs Research discusses how Gold prices become a key driver for EUR/CHF direction.

"We note that CHF would stand to benefit from an improvement in terms of trade following the sell-off in gold prices over the past several weeks which seemed to have weighed on the currency. Indeed, we think the rally in gold prices helps explain the move lower in EUR/CHF last Tuesday amidst the otherwise risk-on price action following the de-escalation headlines," GS notes.

"We find that gold prices have become a more meaningful driver of EUR/CHF returns recently, with higher gold prices driving greater CHF appreciation regardless of the risk backdrop. As a result, a more sustained recovery in gold should help support the Franc," GS adds.