Gold holds firm as dollar slips, BOJ reduces monetary easing

Gold holds firm as USD slips vs major currencies.

Gold prices dipped marginally on September 11, as the US Dollar took a beating with the DXY (USD) index giving up a large portion of last week’s gains.

While the rate for 22-carat gold stood firm at Rs 5,484 per gram, dropping Re 1, the larger quantities, such as 8 grams and 10 grams, were priced at Rs 43,872 and Rs 54,840, respectively.

Additionally, the cost for 100 grams of 22-carat gold stood at Rs 5,48,400, and the cost of 24-carat gold was at Rs 5,983 per gram.

The Japanese Yen scored the largest gains in the aftermath of comments by the Bank of Japan (BoJ) governor. "We have a variety of options if economic and price conditions turn upward," Governor Kazuo Ueda said in an interview with the Japanese newspaper Yomiuri Shimbun.

"There is still some way to go before the price target can be realised. We will continue our persistent monetary easing policy," he said.

Ueda described the monetary policy modification decided in July as "a mechanism to change the balance between the effects and side effects" of monetary easing measures. The focus will now be on "a quiet exit" that the BOJ is seeking to avoid significant impact on the market.

On the other hand, China's central bank extended its gold-buying spree to the 10th straight month as the world's second-largest economy seeks to move away from its reliance on dollar reserves.

The People's Bank of China's stockpile of the precious metal climbed by 29 tonnes in August to 2,165 tonnes, according to Bloomberg. A total of about 217 tonnes were added over the last 10 months, the outlet said.

China's gold hoarding comes amid the country's push to erode the dollar's dominance of global trade and investment flows, as well as its status as the world's reserve currency. The Asian nation slashed its holdings of Treasurys to a 14-year low in June.

Latest Gold Prices

Chennai's gold rates stood at Rs 55,090 per 10 gram and silver prices at Rs 77,000 per kg. In Mumbai, gold traded at Rs 54,840 and silver at Rs 73,500. Prices at Delhi stood at Rs 54,990 for gold and Rs 73,500 for silver.  In Kolkata, gold prices stood at Rs 54,840 per 10 gram and silver prices at Rs 73,500 per kg.