Gold Futures Rebound From Five-Year Low After ECB Rate Cut
- ECB Governing Council reduced the rate by 10 basis points
- Bullion prices earlier fell to lowest in since February 2010
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Gold futures rallied from a five-year low after the European Central Bank cut its deposit rate, boosting demand for the metal as a store of value.
The move pushed the floor for borrowing costs deeper below zero as officials seek to prevent too-low inflation from becoming entrenched. The ECB will extend its quantitative easing program until at least March 2017 and broaden the range of assets purchased, ECB President Mario Draghi said.