Market reaction to the announcement remained muted, as gold prices continued their consolidation phase near long-term support levels. Spot gold traded at €3,580.24 an ounce, reflecting a 1% decline for the session. The downward trend mirrored performance in the broader market, where dollar-denominated spot gold slipped 1.33% to $4,074.50 an ounce.
Gold Maintains Support as ECB Holds Steady on Rates
The European Central Bank kept interest rates unchanged Thursday, opting for a neutral policy stance despite lingering inflation concerns. The decision leaves deposit facility rates at 2.25%, with the Governing Council citing high uncertainty stemming from energy market volatility and renewed military tensions across the Middle East.
In its official statement, the central bank emphasized that while energy prices remain near June projections, the full inflationary fallout of the current energy shock has not yet materialized. Officials indicated they are tracking the duration and intensity of these pressures to steer inflation back toward the 2% medium-term target. With little forward guidance provided, investors are looking to the ECB’s ongoing assessment of second-round effects to gauge the future path of European monetary policy.
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