Last week was a busy time for central banks. In particular, the European Central Bank released its most recent monetary policy statement. What does it imply for the gold market?
The European Central Bank pledged on Thursday to keep its aggressive stimulus policy at least until the end of the year, arguing that inflation pressures in the Eurozone remained weak despite expectations of faster price growth.
Two of the world's biggest central banks are likely to find themselves with a bigger policy gap by the end of the coming fortnight. The European Central Bank on Thursday will resist calls to start tightening policy against surging inflation but robust U.S. jobs data on Friday could seal the case for another Federal Reserve hike the week after.
There is firm support for a deposit rate cut within the European Central Bank's Governing Council but appetite for more radical action is still limited, conversations with policymakers indicate a month before the March rate decision.
Relative calm returned to world markets on Friday after a week that gave dollar/yen its biggest smashing since 2008, wiped billions off share prices and saw a stampede into top-rated government bonds and gold.
European Central Bank President Mario Draghi said on Friday that the bank had plenty of instruments at its disposal to push meager euro zone inflation levels higher and was both determined and will
