(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 priceindex rose 0.2%. Spot gold was last down $2.60 to $1,230.20 an ounce.
The governmentalso reported that income also rose by 0.2% in September.
Ahead oftime, most consensus forecasts compiled by news organizations called for bothspending and income to rise by 0.4%. The core PCE index was projected to riseby 0.1%.
While the monthlycore PCE index climbed 0.2%, the year-on-year rise was 2%. This readingexcludes food and energy prices.
The PCEindex climbed by 0.1% and was up by 2% year-on-year.
Investorsmonitor the spending and income data as a sign of the strength of consumptionof goods and services in the economy, significant since consumer spendingaccounts for the largest portion of gross domestic product. The price indexesare monitored to see whether inflation is moving toward or away from the targetof the Federal Reserve.
By Allen SykoraFor Kitco News
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