Gold prices steady as ECB holds rates steady as expected

New (Jan 23)  Gold prices are holding steady above initial support at $1,550 as the European Central Bank reiterates its stance that it is in no hurry to tighten monetary policy anytime soon.

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 central bank also restated its stance that interest rates will remain low for the foreseeable future.

“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 said in its statement.

The ECB said that it will also continue buying €20 billion in assets a month.

The gold market is seeing little action

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