Gold Still Softer As U.S. March Personal Spending Rises 0.9%; Core PCE Index Steady
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(Kitco News) - Gold trimmed losses marginally after data showing that U.S. March personal spending was up 0.9%, income rose 0.1%, and the core personal consumption price index was flat. Spot gold was last down $3.20 to $1,282.70 an ounce.
Ahead of the Monday report, economics looked for personal spending to be up by 0.7% or 0.8%, income to rise 0.4% and the core inflation rate to increase 0.1%.
Markets focus closely on the inflation readings in this report, released by the U.S. Bureau of Economic Analysis. The personal consumption price index rose 0.2% from the prior month. The year-on-year rise was 1.5%.
The core PCE index excludes food and energy. While holding steady between February and March, this reading was up 1.6% 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.