Gold jumps by 1% as attention returns to loose monetary policy

Gulf Today Report

Gold advanced by 1% on Tuesday as the prospects of a large stimulus package to help the economy remains high.

Spot gold increased by 1.1% to $1,881.39 per ounce by 06:05 GMT. US gold futures rose 1.3% at $1,878.70.

Prices decreased by 5.2% on Monday following US drugmaker Pfizer Inc experimental COVID-19 vaccine being more than 90% effective. 

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Lachlan Shaw, head of commodity research at National Australia Bank said inflation due to increment in economic activity from the vaccine will boost gold.

Gold will most likely gain from stimulus as it is a shield against inflation and currency debasement.

Silver rose 0.2% to $24.12 an ounce. Platinum gained 0.2% to $868.45 and palladium was 0.3% higher at $2,484.67.