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MTECHTIPS:-Gold falls, as muted inflation data bolsters case for delayed rate hike

MTECHTIPS:-Gold falls, as muted inflation data bolsters case for delayed rate hike

Gold futures inched down on Monday amid a stronger dollar, even as muted inflation data for the month of June provided support to dovish arguments for a delayed interest rate hike by the Federal Reserve. On the Comex division of the New York Mercantile Exchange, gold for December delivery traded in a tight range between $1,088.60 and $1,097.10 before settling at $1,090.60, down 4.60 or 0.42% on the session. After rallying slightly toward the end of last week,gold futures have closed moderately lower during each of the last two sessions. Over the last month, gold has declined by more than 6% during one of its most severe routs since 2010. Gold likely gained support at $1,079.20, the low from July 31 and was likely met with resistance at $1,104.90, the high from July 21. On Monday morning, the U.S. Department of Commerce’s Bureau of Economic Analysis said consumer spending increased by 0.2% in June in line with analysts expectations, while personal income rose by 0.4% — slightly higher than consensus estimates. Analysts forecasted a 0.3% rise in incomes for the month. More critically the Core PCE Index, which strips out food and energy prices, inched up 0.3% for the month, up from a 0.2% increase for May. On a year-over-year basis, however, the gains were muted as the index only increased by 1.3%. At its July FOMC meeting last week, the Fed reiterated that inflation remains below its targeted goal of 2% over the medium term, commonly defined as a period of the next one to two years.
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