Gold & Silver

Gold recovers from 9-month low on US stimulus cheer

Reuters March 8 | Updated on March 08, 2021

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 U.S. coronavirus relief package boosted the metal's appeal.


* Spot gold rose 0.3% to $1,705.62 per ounce by 0041GMT, after hitting its lowest since June 8 at $1,686.40 on Friday. U.S. gold futures climbed 0.3% to $1,703.

* The U.S. Senate on Saturday passed President Joe Biden's $1.9 trillion Covid-19 relief plan. Gold is viewed as a hedge against inflation, likely from the extensive stimulus.

* Further supporting bullion, U.S. 10-year yields held below a one-year peak hit on Friday, while the dollar eased.

* U.S. central bankers on Friday signalled they do not plan to touch the dial on their super-easy policy for some time, expressing little concern over the rapid rise in U.S. Treasury yields in recent weeks.

* The U.S. economy created more jobs than expected in February as falling new Covid-19 infections and additional pandemic relief money from the government boosted hiring.

* 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.

* Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.8% on Friday.

* Speculators cut their bullish positions in COMEX gold and silver contracts in the week to March 2, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

* Silver rose 0.8% to $25.38 an ounce. Palladium climbed 0.4% to $2,348.44. Platinum gained 0.7% to $1,137.42.

Published on March 08, 2021

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