In addition, gold prices were also supported by the European Central Bank (ECB) resolution to keep the policy rate unchanged at today’s meeting. This makes investors worry about the withdrawal of the monetary easing policy.
Comex gold contract Delivered in Dec. Up $3.80 to close at $1,802.60 an ounce.
A weaker dollar will increase the attractiveness of gold. by making gold contracts cheaper for holders of other currencies
The ECB kept the policy rate unchanged at its meeting based on analysts’ expectations. Although inflation in the eurozone hit 3.4 percent in September, the highest level in 13 years.
at the ECB meeting resolved to maintain the policy interest rate or the refinancing rate at 0%, which is the lowest level ever. and kept the deposit interest rate held by commercial banks with the ECB at -0.50% while keeping the loan interest rate at 0.25%.
The ECB also said that banks will continue to buy 20 billion euros/month of bonds under the Asset Purchase Program (APP) and buy bonds under the Pandemic Emergency Purchase Program (PEPP) through March 2022. Total amount of 1.85 trillion euros
Investors are keeping an eye on the Federal Reserve’s (Fed) monetary policy meeting on Nov. 2-3, as speculations the Fed may cut funding in its quantitative easing (QE) bond-buying programme. this meeting