Gold price declined on a stronger U.S. dollar. Speculation that the Fed starts raising interest rate soon weighed on gold price. St. Louis Federal Reserve President James Bullard said on Friday that the Fed may start raising interest rates in September due to the latest U.S. economic growth data.
Gains of the U.S. dollar were limited due to the weaker-than-expected U.S. economic data. Personal spending rose 0.2% in June, in line with expectations, after a 0.7% increase in May. May's figure was revised down from a 0.9% increase.
Consumer spending makes more than two-thirds of U.S. economic activity.
Personal spending was driven by lower demand for automobiles. Spending on auto mobiles dropped 1.3% in June.
The saving rate rose to 4.8% in June from 4.6% in May.
Personal income increased 0.4% in June, in line with expectations, after a 0.4% gain in May. May's figure was revised down from a 0.5% rise.
The personal consumption expenditures (PCE) price index excluding food and energy rose 0.1% in June, in line with forecasts, after a 0.1% gain in May.
On a yearly basis, the PCE price index excluding food and index increased 1.3% in June, after a 1.3% gain in May. May's figure was revised up from a 1.2% rise.
The PCE index is below the Fed's 2% inflation target. The PCE index is the Fed's preferred measure of inflation.
October futures for gold on the COMEX today declined to 1088.20 dollars per ounce.