by Sethuraman N R and Vijaykumar Vedala
Reuters.com
BENGALURU, July 29 — Gold remained steady on Friday and was on track for a monthly gain of 1 percent, as the dollar extended its losses after the Bank of Japan’s stimulus fell short of market expectations.
The Bank of Japan expanded monetary stimulus on Friday through a modest increase in purchases of exchange-traded funds, yielding to pressure from the government and financial markets for bolder action to spur growth and accelerate inflation towards its 2 percent target.
By coordinating its action with the government’s big fiscal spending package, the BOJ likely aimed to maximise the effect of its measures on the world’s third-biggest economy, which is struggling to escape decades of deflation.