We have observed gradient spin echoes in the ground state of laser-cooled 85Rb atoms through paramagnetic Faraday rotation. We have obtained the exact expression for the behavior of the echo signal under the assumption that the motion of the cold atoms is ballistic. The qualitative behaviors predicted by the theory have been confirmed experimentally. We demonstrate the usefulness of the spin echo method for the diagnosis for the atomic density distribution of cold atoms. We discuss various advantages of the spin echo as a novel method for temperature measurement.