(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.
By Allen Sykora
For Kitco News