In yet more good news for gold prices, the European Central Bank has confirmed that it will continue to pump out stimulus funds in order to prop up economies gutted by the COVID-19 pandemic. This, along with soaring inflation, gives gold further additional momentum and adds additional strength to the precious metal.
The bank’s president, Christine Lagarde even suggested that the rate of stimulus may accelerate. Speaking following an ECB policy meeting yesterday (Thursday) she said that emergency purchases over the next quarter will be made “at a significantly higher pace” than what has been seen in the first part of this year.
Reaffirming that the policy would be retained until at least March 2022, she added “We are far away from our ultimate aim. We are certainly not where we would like to be once the pandemic is over.”
Many economic observers suggest that the ECB will continue its stimulus measures while the US Federal Reserve maintains its own stimulus programs.