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Gold price traded higher on the weak U.S. consumer spending and on comments by Boston Fed President Eric Rosengren. Personal spending was flat in April, missing expectations for 0.2% gain, after a 0.5% increase in March. March's figure was revised up from a 0.4% rise.

 

 

Consumer spending makes more than two-thirds of U.S. economic activity.

 

 

Consumers cut back on purchases. The saving rate rose to 5.6% in April from 5.2% in March.

 

 

Personal income increased 0.4% in April, exceeding expectations for a 0.3% rise, after a flat reading in March.

 

 

The increase in personal pending was driven by a rise in in wages and salaries, which climbed 0.2% in April.

 

 

Boston Fed President Eric Rosengren said on Monday that it is not right time for hiking interest rate.

 

 

"The data have disappointed before, and an appropriately data-dependent monetary policy requires confirmation in the numbers, not just in forecasts of better times," Rosengren said.

 

 

The Greek debt crisis also supported gold price. Greece have to repay €310 million IMF loans this week but a new debt deal between Greece and its creditors is not reached yet.

 

 

June futures for gold on the COMEX today rose to 1200.10 dollars per ounce.



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