EDITOR'S NOTE: Don't Miss a Beat! Sign-up for the Kitco News Weekly Roundup– our newsletter highlighting our most popular features, articles and videos! Register Here

ECB Won’t Buy Gold As Part Of QE Program

By Kitco News
Thursday 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:

By Neils Christensen of Kitco News; nchristensen@kitco.com



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
kitco news

Precious Metal Charts

Click to see this Precious Metal chart
  1. 24h
  2. 30D
  3. 60D
  4. 6M
  5. 1Y

Interactive Chart