Gold Price Stability Amid ECB's Neutral Policy Stance

The European Central Bank (ECB) has adopted a neutral policy stance despite ongoing inflation concerns. As widely anticipated, the ECB decided to keep interest rates unchanged following its monetary policy meeting on Thursday. The central bank confirmed that its deposit facility rate remains at 2.25%, the main refinancing operations rate at 2.40%, and the marginal lending facility rate at 2.65%.

The ECB's decision has had a limited effect on gold prices. Spot gold was last quoted at EUR 3,580.24 per ounce, a decline of 1% on the day. This price action against the euro mirrors the broader market trend. Spot gold was also down 1.33% to $4,074.50 per ounce.

The ECB is closely monitoring the intensity and duration of the energy shock, along with its indirect and second-round effects, and remains committed to setting policy to ensure inflation stabilizes at its 2% target over the medium term.