Gold gains 1% as Trump signs pandemic aid bill
· Gold prices jumped 1% on Monday as investors cheered news that U.S. President Donald Trump signed into law a long-awaited pandemic aid bill, with a weaker dollar lending further support.
· Spot gold was up 1% at $1,894.44 per ounce by 0344 GMT, after hitting a one-week high of $1,900.04 earlier in the day. U.S. gold futures gained 0.9% 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.
· “Markets are rallying on the stimulus bill,” said Stephen Innes, chief global market strategist at financial services firm Axi.
· ″(But) we’ve been talking about this deal for a long time, so how much the market is going to follow through will be the big question.”
· The dollar was down 0.2% against rivals, lifting bullion’s appeal for other currency holders.
· Investors are now keeping a close eye on a U.S. House of Representatives vote on Monday to increase coronavirus relief checks to individuals from $600 to $2,000, with Trump saying the Senate “will start the process” to approve higher payments.
· While gold could move above $1,900 an ounce, it will likely need the dollar to weaken further in order to sustain itself above the level, Innes added.
· Gold, seen as a hedge against inflation, has gained more than 24% this year, largely driven by a raft of stimulus measures to mitigate the impact of the pandemic.
· Silver was up 2.8% at $26.56 an ounce, after hitting a one-week high of $26.75 earlier in the session. Platinum climbed 1.2% to $1,036.22 and palladium was up 0.5% at $2,360.79.
Reference: CNBC
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