Gold records gain on US stimulus cheer

Gulf Today Report 

Gold jumped by 1.3% on Monday as President Donald Trump signs the pandemic aid bill and dollar weakens.

Spot gold was up 0.7% at $1,888.84 per ounce by 06:18 GMT, after earlier hitting a one-week high of $1,900.04. US gold futures gained 0.5% to $1,893.20.

Jeffrey Halley, a senior market analyst at OANDA said with or without the stimulus, gold is likely to climb. 

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Gold serves as a shield against inflation and currency debasement that could result from the large stimulus injected into the economy.

Stephen Innes, chief global market strategist at financial services firm Axi said, "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."

Gold might be needing the dollar to decline further for it to sustain itself above $1,900.