Gold recovers from nine-month low on U.S. stimulus cheer
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.
FUNDAMENTALS
* Spot gold rose 0.3% to $1,705.62 per ounce by 0041 GMT, 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 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 signaled 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.
DATA/EVENTS (GMT)
0700 Germany Industrial Output MM Jan
1000 UK The governor of the Bank of England, Andrew Bailey, give a speech on the outlook for the economy to the Resolution Foundation think tank
(Reporting by Sumita Layek in Bengaluru; Editing by Rashmi Aich)
