Prices of gold futures extended losses on Monday, the speculators keep burnishing gold, after data showed that US personal spending rose amid of market expectations in June, underscoring optimism about the health of the economy and support the case for a rise in interest rates this year.
Money managers were net short in pigs for the second consecutive week, after going downward for the first time since the US administration data began in 2006. The value of exchange-traded products tracking gold fell $ 6 billion last month, the most since September, data compiled by Bloomberg.
On the Comex Gold futures fell 6.5 percent in July to $1,095.10 an ounce on the Comex, the biggest drop since June 2013. Prices touched $1,073.70 on July 24, the lowest since 2010, and traded at $1,090 on Monday.
On the Comex Gold futures fell 6.5 percent in July to $1,095.10 an ounce on the Comex, the biggest drop since June 2013. Prices touched $1,073.70 on July 24, the lowest since 2010, and traded at $1,090 on Monday. Gold futures for December delivery dipped $4.30, or 0.39%, to trade at $1,090.80 a troy ounce.
The Commerce Department said personal expenditures edged up 0.2% in June, expectations for the meeting. Personal spending up 0.7% in May, whose figure was revised from a previously reported gain of 0.9%.
Consumer spending is the principal source of growth of the economy, accounting for two thirds of economic activity.
The report also showed individual income rose 0.4% in June, above forecasts for a rise of 0.3% after having increased 0.4% in May.
Meanwhile, the core PCE price index rose 0.1% in June, in line with expectations and after having increased 0.1% in May. The core PCE price index grew at an annualized rate of 1.3%, above the estimates of 1.2% after a 1.3% gain in May.
The Federal Reserve uses the core PCE as a tool to assist in determining if it should raise or lower interest rates, with the aim of maintaining inflation at a rate of 2% or less.
Later in the day, the Institute for Supply Management is to release data on manufacturing activity. Market participants are also focusing on non-farm payrolls report on Friday.
Also on the Multi Commodity Exchange (MCX), Gold prices were trading lower on Monday. MCX Gold October contract was trading at Rs 24968 down 0.16 percent.
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