Print

Spot gold was down 1.6% to $1,877.11 per ounce by 12:25 p.m. EST after rising over $1,900 per ounce during Asian trading hours. US gold futures slipped 0.1% to $1,881.50 on the Comex.

Meanwhile, the dollar index pared losses after falling by 0.2% to a one-week low earlier, which took away bullion’s appeal for other currency holders.

On Sunday, President Trump signed into law a $2.3 trillion pandemic aid and spending package, restoring unemployment benefits to millions of Americans.

“Even without extra stimulus, gold could climb higher … Trump’s signature (on the stimulus bill) was the last major risk point to the bull market,” said Jeffrey Halley, a senior market analyst at OANDA.

Bullion, considered a hedge against inflation, has risen about 24% so far this year amid the unprecedented stimulus unleashed globally.