The price of gold on Monday (8/3) has the potential to rise to around US$1,740 per troy ounce as long as the 10-year US government bond yield does not rise to around 1.6 percent.

"The passing of the US$1.9 trillion stimulus proposal in the US Senate gave a positive sentiment to the price of gold. Market players left US dollar assets and entered riskier assets," said Commodities Observer Ariston Tjendra in Jakarta.

He added that the passage of the stimulus also has the potential to increase the yield on long-term US bonds due to expectations of recovery and higher US inflation in the future.