Gold prices fell immediately after the ECB's move to slash interest rates further to record lows and ramp up bond purchases on Thursday. That reaction was somewhat surprising to analysts as the the cut in rates should have reduced the attractiveness of alternatives to gold, which doesn't pay any interest.
Prices did rebound later in the session but that was after the euro recovered against the U.S. dollar as ECB chief Mario Draghi indicated that further rate cuts are unlikely. Spot gold prices are up less than 1 percent around $1,280 an ounce in early Asian trade on Friday.
The move indicates other drivers may be exerting a greater influence on gold prices, according to Julian Jessop, head of commodities research at Capital Economics.