In a resolute stance, gold prices are holding steady against the euro, unmoved by the European Central Bank’s decision to keep interest rates unchanged while expressing confidence in their ability to curb inflation and bring it in line with the 2% target.
During Thursday’s highly anticipated meeting, the ECB made no adjustments to the interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility, maintaining the rates at 4.50%, 4.75%, and 4.00% respectively.
Despite the persistence of elevated inflation, the ECB highlighted progress in their efforts to tame consumer prices. The Council emphasized, “Inflation is still expected to stay too high for too long, and domestic price pressures remain strong. At the same time, inflation dropped markedly in September, including due to strong base effects, and most measures of underlying inflation have continued to ease. The Governing Council’s past interest rate increases continue to be transmitted forcefully into financing conditions. This is increasingly dampening demand and thereby helps push down inflation.”
Surprisingly, the gold market showed minimal response to the ECB’s latest monetary policy announcement. The current spot gold price stands at €1,884.20 per ounce, marking a nearly 1% increase for the day.
Notably, gold maintains its superior performance against the euro in comparison to the U.S. dollar. The latest figures show spot gold against the greenback trading at $1,985.90 per ounce, reflecting a 0.57% uptick for the day.