The Bank of Japan has stated that it will pursue stimulus measures, buying up some $146 billion in assets per month starting January 2014 and continuing until inflation closes in on 2 percent.
The news sent February gold futures up 0.4 percent to touch $1,693.20/oz on Tuesday afternoon. Over last year, gold bullion gained a total of 7 percent on the stimulus actions undertaken by banks across Europe, the U.S., and Japan.
“This is definitely bullish for gold,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview.
Meanwhile, India, which was the largest gold buyer over 2011, has raised import duties on gold and platinum, going to 6 percent from its previous level of 4 percent. That’s likely to slow down gold consumption at least somewhat.