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ECB Leaves Interest Rates Unchanged; Gold Holds Steady

Kitco News

(Kitco News) -The European Central Bank did the expected Thursday and left interest rates unchanged, suggesting they will remain at current levels for an "extended period of time.” Gold moved little on the news.

The central bank left interest rates on the main refinancing operations, the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and minus 0.40%, respectively.

“The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases,” policymakers said in a prepared statement.

ECB President Mario Draghi is scheduled to hold a news conference at 8:30 a.m. EST.

Analysts expressed doubt ahead of time that the ECB would be hawkish due to the recent surge in the euro against the U.S. dollar, suggesting that the development could hurt the central bank’s efforts to see inflation move back to its target rate.

Gold has not moved much on the news even though the euro ticked higher. The single European currency climbed to $1.24085 as of 7:55 a.m. EST, compared to $1.24042 two minutes ahead of the ECB announcement. Comex February gold was up $1.20 to $1,357.50, compared to $1,357.40 two minutes ahead of time.

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