(Kitco News) - The gold market is struggling to find its footing as global central banks maintain neutral monetary policy stances. The European Central Bank is the latest to hold the line, keeping its interest rates unchanged.
In an expected move, the ECB announced it would leave interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility unchanged at 2.00%, 2.15%, and 2.40%, respectively.
The central bank also provided little forward guidance as it expects inflation to fall to its 2% target eventually.
“The economy remains resilient in a challenging global environment. Low unemployment, solid private sector balance sheets, the gradual rollout of public spending on defence and infrastructure and the supportive effects of the past interest rate cuts are underpinning growth. At the same time, the outlook is still uncertain, owing particularly to ongoing global trade policy uncertainty and geopolitical tensions,” the central bank said in its monetary policy statement.
The gold market is not seeing much reaction to the ECB’s decision as it continues to see broad-based selling pressure. Spot gold last traded at €4,115.47 an ounce, down more than 2% on the day.
Gold’s selloff against the euro is a reflection of the overall landscape. Against the U.S. dollar, spot gold last traded at $4,854.20 an ounce, down more than 2% on the day.
