Gold: Gold gains 1% as Trump signs stimulus bill

Dec 28:
Gold prices jumped 1% on Monday as the metal’s appeal as an inflation hedge was boosted by news that U.S. 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. U.S.
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.



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