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