Gold price saw a huge decline last week.(Reuters Photo)
Gold price saw a huge decline last week.(Reuters Photo)

Gold price recovers from 9-month low: Here's why

Last week, the price of the precious metal suffered a huge fall. However, a stronger-than-expected US non-farm payrolls data helped it recover somewhat.
By hindustantimes.com | Edited by Amit Chaturvedi
UPDATED ON MAR 08, 2021 07:59 AM IST

Gold prices rose on Monday, recovering from a near nine-month low hit in the previous session, as a passage of the long awaited $1.9 trillion US coronavirus relief package boosted the metal's appeal.

Spot gold rose 0.3 per cent to $1,705.62 per ounce, after hitting its lowest since June 8 at $1,686.40 on Friday. US gold futures climbed 0.3 per cent to $1,703. The price of silver too rose 0.8 per cent to $25.38 an ounce.

Last week, the price of the precious metal suffered a huge fall. However, a stronger-than-expected US non-farm payrolls data helped it recover somewhat.

The data showed that the US economy created more jobs than expected in February as falling new Covid-19 infections and additional pandemic relief money from the government boosted hiring. The jobless rate in the US dipped to 6.2 per cent in a positive sign for incomes, spending and corporate earnings.

There was also upbeat news in Asia, as China's exports surged 155 per cent in February compared with a year earlier when much of the economy shut down to fight the coronavirus.

Spot gold was down 0.2% at $1,694.50 per ounce on Friday, having touched its lowest since June 8 at $1,686.40. It saw a fall of two per cent last week.

Retail consumers in India continued to buy up physical gold last week as prices retreated to a near one-year low, while lower rates also injected fresh activity in other hubs, especially Singapore.

By Friday, the price of gold fell to record 44,344 per 10 gram. Silver futures on MCX also fell to 65,371 per kg. The decline in silver was of more than 12,000 from its peak of 77,800 per kg last year in the month of August.

Meanwhile, oil prices were up the highest levels in more than a year after Yemen's Houthi forces fired drones and missiles at the heart of Saudi Arabia's oil industry on Sunday, raising concerns about production.

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