The ECB has announced they are to inject 200 billion euros worth of newly created money into the financial system in response to the faultering Eurozone economy. The gold price surprisingly remained relatively flat despite this inflationary policy announcement. Over the last 12 months the gold price is down nearly £60 per ounce.

European stock markets reacted negatively with the Italian stock market dropping 4% as this latest action fell short of the ECB purchasing sovereign debt outright. Instead the Bank are to purchase covered loans in the form of mortgages and public sector loans.

As ECB Head Draghi said he was "committed to using additional unconventional instruments" in the future should inflation remain low for too long. With interest rates at historic lows it appears the ECB is running out of ammunition, maybe the last step will be outright quantitative easing?