(Kitco News) - Gold prices continue to trade at record highs against the euro as the European Central Bank lowers interest rates across the board.
In a widely anticipated move, the ECB cut its three key interest rates by 25 basis points. The rates on the deposit facility, main refinancing operations, and marginal lending facility will decrease to 2.75%, 2.90%, and 3.15%, respectively.
“In particular, the decision to lower the deposit facility rate—the rate through which the Governing Council steers the monetary policy stance—is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission,” the ECB said in its monetary policy statement.
The gold market was seeing solid gains ahead of the central bank’s decision and remains well-supported in its initial reaction. Spot gold last traded at €2,673.66 an ounce, up roughly 1% on the day.
Gold’s movement against the euro aligns with broader currency trends. The precious metal is back within striking distance of new all-time highs against the U.S. dollar. Spot gold last traded at $2,782.90 an ounce, up nearly 1% on the day.
