Gold futures settled lower on Thursday, extending losses from a day earlier, as the European Central Bank stood pat on rates and as investors looked ahead to policy moves by other global central bankers.
“The pullback has everything to do with the ECB confirming the status quo as it pertains to [quantitative easing],” said Adam Koos, president of Libertas Wealth Management Group. “Adding insult to injury, Super Mario Draghi [the ECB’s president] rubbed salt in the wounds of stimulus hopefuls, saying that ‘expectations were again too high ahead of (the) decision’.”
On Thursday, the ECB held its benchmark rate steady as expected, and repeated a pledge to keep rates low for an extended period. The ECB, however, made no move to extend or modify its asset-buying program.
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Article from Market Watch.