Gold price remains under pressure as ECB holds steady course

New York (July 16)  The gold market remains under modest selling pressure as the ECB hold a steady course on interest rates and extremely accommodative monetary policy.

As expected, following its monetary policy meeting, 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 ECB also maintained its stance that it would conduct emergency asset purchase through 2021 and it would also continue its regular monthly-asset purchase program for as long as necessary.

“The Governing Council continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry,” the ECB said in its statement.

The gold market continues to see technical selling pressure as it holds support above $1,800 an ounce. August gold futures last traded at $1,808.60 an ounce, down 0.29% on the day.

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