Demand for gold surged to an 11-year high last year. This is due to large-scale purchases on the back of high activity by retail investors and a slowdown of ETF outflows.
Lagarde: ECB will maintain the course to bring inflation down to 2%
President of the European Central Bank (ECB) Christine Lagarde said that the bank is ready to take all needed actions to bring inflation down to its target level. As Lagarde emphasized, it might require more aggressive interest rate hikes in the upcoming meetings.
During her speech in Eschborn on Monday, she also outlined that borrowing costs will rise sustainably. They should reach a certain level and maintain it for as long as needed.
Currently, the issue of raising rates remains quite controversial and often becomes a subject to discussions, as inflation begins to decline. However, Lagarde specified that the decline in energy inflation has been observed, while core inflation continues to rise.
President of the Dutch central bank Klaas Knot, along with other advocates of a hawkish position, expects the rates to rise by 50 basis points at least two more times.
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