Gold Remains Softer After U.S. Personal Spending Rises 0.4%; Core PCE Index Up 0.2%
(Kitco News) - Gold prices remained slightly softer, moving little after the government reported U.S.personal spending rose 0.4% in September, while the core personal consumption priceindex rose 0.2%. Spot gold was last down $2.60 to $1,230.20 an ounce.
The governmentalso reported that income also rose by 0.2% in September.
Ahead oftime, most consensus forecasts compiled by news organizations called for bothspending and income to rise by 0.4%. The core PCE index was projected to riseby 0.1%.
While the monthlycore PCE index climbed 0.2%, the year-on-year rise was 2%. This readingexcludes food and energy prices.
The PCEindex climbed by 0.1% and was up by 2% year-on-year.
Investorsmonitor the spending and income data as a sign of the strength of consumptionof goods and services in the economy, significant since consumer spendingaccounts for the largest portion of gross domestic product. The price indexesare monitored to see whether inflation is moving toward or away from the targetof the Federal Reserve.
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.