Gold rose 1% on Monday to its highest level in more than seven years, as disappointing US data confirmed the extent of the damage caused by COVID-19 to the world's largest economy, while palladium rose more than 9% due to better demand expectations.
The spot price of gold rose 1% to $1759.13 an ounce, after rising to its highest level since October 12, 2012 at $1764.46 earlier, while U.S. gold futures rose 0.9% to 1772.70. Data released on Friday showed that US retail sales and industrial production fell in April, putting the economy on track for its deepest contraction since the Great Depression.
On the other hand, US Federal Reserve Chairman Jerome Powell stressed that US economic recovery may be delayed until next year, and that its full recovery may depend on the development of a coronavirus vaccine.
