Gold Inches Up As Aug. U.S. Personal Spending Rises 0.1%; Income Up 0.2%
Editor's Note: Updating earlier story with more details from report.
(Kitco News) – Gold edged modestly higher after a Department of Commerce report showing personal spending by Americans climbed 0.1% in August, while income rose 0.2%.
The data were in line with expectations. Ahead of time, most consensus forecasts compiled by news organizations called for spending to be up by 0.1%. Income was expected to rise by 0.1% or 0.2%.
Around 8:40 a.m. EDT, Comex December gold was trading $3.10 higher for the day to $1,291.80 an ounce. Three minutes ahead of the report, the metal was at $1,289.
July spending was revised to a rise 0.1% compared to the previously reported 0.3% gain. Income revised to a 0.3% rise from a previously reported 0.4% increase.
Meanwhile, the personal consumption price index rose 0.2%. The year-on-year rise was 1.4%.
The core PCE index, which excludes food and energy, rose 0.1%. It was up 1.3% year-on-year.
Investors monitor the spending and income data as a sign of the strength of consumption of goods and services in the economy, significant since consumer spending accounts for the largest portion of gross domestic product. The price indexes are monitored to see whether inflation is moving toward or away from the target of the Federal Reserve.