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ECB Won’t Buy Gold As Part Of QE Program
By Kitco NewsThursday December 4, 2014 9:32 AM
(Kitco News) - Mario Draghi, president of the European Central Bank, has confirmed that the central bank will not buy gold as part of its asset-backed purchase program.
Draghi made the comment Thursday during the question and answer period of his monthly press conference following the ECB’s monetary policy meeting. He was asked what types of assets the governing council would buy as part of its quantitative easing program.
He responded, “we discussed all assets but gold.”
Speculation arose that gold could be part of the central bank’s asset purchases after Yves Mersch, a member of the ECB executive board, said on Nov. 17 that the central bank has broad range of options in its current quantitative easing program. As an example, he mentioned that gold could be a “theoretical” option.
Some analysts had not taken the comment too seriously as it would take significant gold purchases to impact the ECB’s balance sheet.
Following its monetary policy meeting, the ECB said it would leave the main refinancing operation at 0.05%. Its marginal lending facility rate stands at 0.30% and its deposit facility remains at negative 0.20%.
Related Stories:
- ECB Waiting For Early 2015 Before Deciding Future of QE
- ECB Unlikely To Buy Gold Despite Recent Comments - Analysts
By Neils Christensen of Kitco News; nchristensen@kitco.com
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