(Kitco News) -Central banks maintaining restrictive monetary policies is not enough to scare the gold bulls with momentum on their side. Gold prices continue to trade at record highs against the Canadian dollar as the Bank of Canada is the latest central bank to leave interest rates unchanged.
In a much-anticipated move, the BoC left its overnight rate at 5.00%, with the Bank Rate at 5.25% and the deposit rate at 5.00%.
The central bank said that it still remains focused on inflation and it remains above the 2% target.
“The Council is still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation. Governing Council wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour,” the BoC said in its monetary policy statement.
The gold market is not paying much attention to what central bankers are saying today as it continues to see solid bullish momentum. In spot markets, gold is trading at $2,906.33 an ounce against the Canadian dollar, up 0.53% on the day.
