Gold prices weaken against the Euro as ECB keeps interest rates unchanged

In the long-awaited decision, the ECB announced to keep interest rates unchanged, including: Deposit interest rate at 2%, refinancing interest rate at 2.15% and borrowing interest rate at 2.4%.

At the same time, the ECB also did not provide a clear direction on monetary policy in the coming time.

The newly received information is generally consistent with the Board of Governors' previous assessment of the inflation outlook. Domestic price pressure continues to decrease, salary increases slow down.

Partly thanks to the previous interest rate cuts by the Board of Directors, the economy in general still shows stability in the challenging context of the whole world. However, the environment remains particularly uncertain, especially due to trade disputes, the ECB said in its monetary policy statement.

The ECB reaffirmed that it will continue to rely on economic data and apply a one-on-one approach to monetary policy.

The Board of Governors interest rate decisions will be based on an assessment of inflation prospects and related risks, taking into account new economic and financial data, as well as core inflationary drivers and the extent of monetary policy. The Board of Governors will not commit to any specific interest rate roadmap ahead of schedule the ECB stated.

The gold market did not record any significant changes in momentum after the ECB's policy decision. The latest spot gold price was recorded at 2,860.6 euros/ounce, down 0.56% on the day.

Gold prices in the Euro are generally still moving in line with the general trend of the market. The spot gold price at 10:45 p.m. on July 24 was at 3,372.6 USD/ounce.

Last night, gold prices fell but recovered slightly from the lowest level in the session. Profit-taking pressure from short-term futures speculators has appeared in both metals, while gold is also affected by weak buying positioning meaning speculators who have just opened a buying position but quickly suffered losses.

The increased risk-off sentiment in the general market today is also a disadvantage for safe-haven assets such as gold and silver.