Make Kitco Your Homepage

Gold Remains Softer After U.S. Personal Spending Rises 0.4%; Core PCE Index Up 0.2%

Kitco News

(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 price index rose 0.2%. Spot gold was last down $2.60 to $1,230.20 an ounce.

The government also reported that income also rose by 0.2% in September.

Ahead of time, most consensus forecasts compiled by news organizations called for both spending and income to rise by 0.4%. The core PCE index was projected to rise by 0.1%.

While the monthly core PCE index climbed 0.2%, the year-on-year rise was 2%. This reading excludes food and energy prices.

The PCE index climbed by 0.1% and was up by 2% 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.

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.

Precious Metal Charts

Follow Kitco News