LONDON, Sept 6 (Reuters) - Gold fell by more than 2 percent on Tuesday, having earlier risen to a record high at $1,920.30 an ounce, after the Swiss National Bank surprised markets with its decision to peg the franc to the euro to tame the currency's runaway rally this year.
Gold was last at $1,887.20 an ounce by 0816 GMT, having hit a low of $1,859.24.
The SNB said it would set a minimum exchange rate target of 1.20 francs to the euro and would enforce it by buying foreign currency in unlimited quantities. .
"That is one of the reasons that has triggered further selling in gold. The problem is, if we see the Swiss franc pegged, what other safe-havens have we got? But that is causing a bit of panic and we are seeing some (sell orders) triggered," said Saxo Bank senior manager Ole Hansen. (Reporting by Amanda Cooper; Editing by Alison Birrane)