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MTECHTIPS:-Gold futures trim losses after consumer spending data
Gold prices trimmed losses on Monday, as the U.S. dollar gave back some of its strong overnight gains following the release of disappointing U.S. personal spending data. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery shed 90 cents, or 0.08%, to trade at $1,188.90 a troy ounce during U.S. morning hours. Prices held in a range between $1,184.80 and $1,197.30. On Friday, gold tacked on $1.00, or 0.08%, to settle at $1,189.80. Futures were likely to find support at $1,180.20, the low from May 28, and resistance at $1,208.90, the high from May 26. The Commerce Department said that personal spending was flat in April, compared to expectations for a gain of 0.2% and following an increase of 0.5% in March. Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity. The report also showed personal income rose by 0.4% in April, above forecasts for a 0.3% increase and after holding flat in March. Meanwhile, the core PCE price index inched up 0.1% in April, below expectations for 0.2% and after rising 0.1% in March. The core PCE price index rose at an annualized rate of 1.2%, down from a 1.3% gain in March and compared to forecasts of 1.3%. The Federal Reserve uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.
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