Gold gains as US leaders agree on stimulus package
Picture used for illustrative purpose. File
Gulf Today Report
Gold rose on Monday, a six-week high as US leaders agree on aid package and the United Kingdom impose tighter restrictions, increasing demand for riskier assets.
Spot gold rose 1.1% to $1,900.57 per ounce by 05:12 GMT, US gold futures gained 0.9% to $1,904.80.
The $900 billion package is the second-largest stimulus injected into the US.
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"Now that we've got fiscal stimulus behind us, gold has enough momentum to close above $1,900 by year-end and it could even climb up to $1,925," said Stephen Innes, chief global market strategist at financial services firm Axi.
Stocks declined, giving way for gold as London moves into tier 4 restrictions to control the new coronavirus strain.
As investors look beyond pandemic and into economic recovery, gold has regained its safe-haven status as a shield against inflation and currency debasement, according to expert.
Silver rose 4.5% to $26.93 an ounce, having hit its highest since Sept. 18 at $27.02 earlier in the session. Platinum rose 0.9% to $1,045.40 and palladium gained 0.7% to $2,376.13.
