On 6 June, the European Central Bank (ECB) implemented its first rate cut in five years, reducing the interest rate by 25 basis points to 3.75%, despite higher-than-expected inflation figures from May. This move followed a similar rate cut by the Bank of Canada which reduced its interest rate by 25 basis points just a day earlier. These cuts reflect Western central banks’ shifting priorities to supporting economic growth rather than cracking down on inflation. The euro:dollar exchange rate held up despite the ECB’s rate cut, but the dollar strengthened on Friday contributing to the gold price weakness. The ... (full story)