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Gold price holding on to gains as ECB leaves interest rates unchanged

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(Kitco News) - The gold market is holding steady as the European Central Bank monetary policy decision contained no surprises for investors.

As expected, Thursday, the ECB announced that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively.

"The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics," the central bank reiterated in its monetary policy satement.

Many economists were expecting the central bank to stand pat as the council introduced new spending measures in December.

February gold futures last traded at $1,875.50 an ounce, up 0.28% on the day.

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