Gold Steady on BoJ Stimulus, Set for Monthly Gain

by Sethuraman N R and Vijaykumar Vedala

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.

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