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Gold prices holding steady as ECB raises interest rates by 50 basis points and will continue its aggressive path in March
(Kitco News) - The gold market is not seeing much movement, holding gains above $1,950 an ounce after the European Central Bank raises interest rates by 50 basis points.
Thursday, in line with expetations, the ECB raised interest rates across the board by 50 basis points; the main refinancing operations, marginal lending facility and the deposit facility rose to 3.00%, 3.25% and 2.50% respectively.
The ECB also warned investors that it is not through raising interest rates as inflation remains a threat to the region’s economy.
“The Governing Council will stay the course in raising interest rates significantly at a steady pace and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to its 2% medium-term target,” the central bank said in its monetary policy statement. “In view of the underlying inflation pressures, the Governing Council intends to raise interest rates by another 50 basis points at its next monetary policy meeting in March and it will then evaluate the subsequent path of its monetary policy,” the ECB said in its monetary policy statement.
