Prices of gold futures cut losses on Monday, as the US dollar restored some of their sharp gains overnight after the release of disappointing figures on personal expenses, and outlook of increased interest rates in the United States towered, but uncertainty about the Greek crisis caps losses.
On the Comex, gold futures for August delivery decline by 90 cents, or 0.08%, to trade at $1,188.90 a troy ounce. Spot gold was down 0.3 percent at $1,186.79 an ounce.
The DOC said personal spending remained in April, compared to expectations for a gain of 0.2% after a 0.5% rise in March.
Consumer spending is the main source of growth of the economy, accounting for two thirds of economic activity. The report also showed personal income rose 0.4% in April, above forecasts for a rise of 0.3% after holding flat in March.
Meanwhile, the core PCE price index rose 0.1% in April, below expectations of 0.2% after increasing 0.1% in March. The core PCE price index grew by an annualized rate of 1.2%, compared to a gain of 1.3% in March, compared with the provisions of 1.3%.
The Federal Reserve uses the core PCE as a tool to assist in determining whether to raise or lower interest rates, in order to keep inflation at a rate of 2% or less.
The greenback index, which measures the strength of the US dollar against major currencies, was trading at 97 384, 0.49% from the previous close of 96 907.
The Indian rupee opened at 63.78 per dollar and hit a high of 63.59, before closing at 63.71, up 0.19% from its previous close of 63.83.
The operators were also wary ahead of the loan amortization period of Greece. Greece plans to pay $ 1.76 billion to the International Monetary Fund (IMF), on June 5, Reuters reported.
Without an agreement, Greece runs the risk of default or bankruptcy, this week, a possibility that has been supporting the prices of gold to a degree. Athens lost one Sunday self-imposed deadline to arrive at an agreement to release the aid, sources close to the talks.
Gold futures on MCX were trading with decline on Monday. MCX Gold rate touched an intraday high of Rs 27,099 and an intraday low of Rs 27,076.
For commodity market tips, MCX live tips, Gold-Silver prices and trading market latest news & updates with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at email@example.com or Call: +91-761-4012307