Gold gains 1% as Trump signs stimulus bill

Gold prices jumped 1% on Monday as the metal's appeal as an inflation hedge was boosted by news that US President Donald Trump had signed a long-awaited coronavirus relief aid bill.

FUNDAMENTALS

Spot gold rose 1% to $1,895.03 per ounce by 0145 GMT. US gold futures gained 0.8% to $1,899.10.

Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, restoring unemployment benefits to millions of Americans and averting a partial federal government shutdown, officials said.

Gold has gained more than 24% this year, largely driven by its appeal as a hedge against inflation and currency debasement in the wake of unprecedented stimulus measures unveiled globally to mitigate the impact of the pandemic.

Further supporting the metal on Monday, the dollar edged lower against a basket of currencies, bolstering gold's appeal to other currency holders.

Bank of Japan policymakers were divided on how far to go in tweaking the stimulus programme, with some calling for an overhaul of its strategy for achieving 2% inflation, a summary of views voiced at the December rate review showed.

Europe launched a mass COVID-19 vaccination drive on Sunday with pensioners and medics lining up to get the first shots to see off a pandemic that has crippled economies and claimed more than 1.7 million lives worldwide.

Britain on Monday urged businesses to prepare for Brexit, after the country clinched a trade deal with the European Union on Thursday that preserved zero-tariff and zero-quota access to the bloc's single market.

Silver rose 3% to $26.63 an ounce. Platinum climbed 1.7% to $1,040.37 and palladium was up 0.5% at $2,360.79.