Dec 28 (Reuters) - Gold prices jumped 1% on Monday as the metal's appeal as an inflation hedge was boosted by news that U.S. President Donald Trump had signed a long-awaited coronavirus relief aid bill.
FUNDAMENTALS
* Spot gold XAU= rose 1% to $1,895.03 per ounce by 0145 GMT. U.S. gold futures GCv1 gained 0.8% 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, officials said. Gold has gained more than 24% this year, largely driven by its appeal as a hedge against inflation and currency debasement in the wake of unprecedented stimulus measures unveiled globally to mitigate the impact of the pandemic.
* Further supporting the metal on Monday, the dollar .DXY edged lower against a basket of currencies, bolstering gold's appeal to other currency holders. USD/
* Bank of Japan policymakers were divided on how far to go in tweaking the stimulus programme, with some calling for an overhaul of its strategy for achieving 2% inflation, a summary of views voiced at the December rate review showed. Europe launched a mass COVID-19 vaccination drive on Sunday with pensioners and medics lining up to get the first shots to see off a pandemic that has crippled economies and claimed more than 1.7 million lives worldwide. Britain on Monday urged businesses to prepare for Brexit, after the country clinched a trade deal with the European Union on Thursday that preserved zero-tariff and zero-quota access to the bloc's single market. Silver XAG= rose 3% to $26.63 an ounce. Platinum XPT= climbed 1.7% to $1,040.37 and palladium XPD= was up 0.5% at $2,360.79.