Gold prices fall from record high as euro weakens

In a widely expected move, the ECB cut its three main interest rates by 25 basis points again on Thursday. Specifically, the deposit rate, main refinancing rate and marginal lending rate will be cut to 2.25%, 2.40% and 2.65%, respectively.

Gold prices initially showed no strong reaction to the ECB announcement but are now slightly down from their record highs. Spot gold is currently trading at 3,326.63 euros per ounce, down 0.48% on the day.

Although the ECB continues to warn of downside risks, its latest monetary policy statement contained few surprises. The ECB said: "Inflation has continued to evolve as expected, with both headline and core inflation falling in March. Services inflation has also declined significantly in recent months. Most core inflation indicators point to inflation stabilizing at the Governing Council's medium-term target of 2%."

However, the euro area growth outlook is deteriorating due to escalating trade tensions. The ECB said: "The euro area economy has built up resilience to global shocks, but growth prospects have deteriorated. Increased uncertainty could undermine household and business confidence, while a negative market reaction to trade tensions could further tighten financial conditions. These factors could continue to weigh on the economic outlook."

The ECB stressed that it remains data-dependent and that monetary policy is not on a predetermined path. Against this backdrop, gold continues to be viewed as an attractive asset as central banks maintain easy monetary policy and the global economy faces multiple risks.

Source: https://baoquangnam.vn/gia-vang-giam-tu-muc-cao-ky-luc-truoc-dong-euro-giam-gia-3153036.html