ECB Rate Hike Fails to Dent Gold Market as Investors Remain Calm

The European Central Bank (ECB) has increased its key interest rates by 25 basis points in an effort to combat inflation, which remains above its target of 2%. The move was made amid ongoing concerns about inflation pressures partly due to the Middle East conflict. Despite this rate hike, the gold market showed limited selling pressure.

Spot gold prices fell modestly by around 0.6% in euros and 0.77% in dollars. This muted reaction suggests investors are not significantly deterred by the ECB's move, keeping gold relatively stable amid global inflation concerns.