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Gold prices fell to a four-month low amid data on personal spending and income Americans.
Consumer spending in the U.S. fell in April , despite the forecasts of experts at a moderate increase , which reinforces concerns about the strength of economic recovery.
Ministry of Commerce announced that the seasonally adjusted volume of personal spending fell in April by 0.1 % , compared to the upwardly revised figure for the previous month at 1.0 % (originally reported +0.9 %). We add that the March growth was highest since August 2009. Economists had expected the figure to grow in April by 0.2%.
Many indicators have been volatile over the past few months , which was due to weather factors . Most economists say that the recession in the first quarter is likely to be followed by a moderate increase .
The Ministry of Commerce also reported that the annualized consumer spending rose by 3.1% in the first quarter , helped by rising health care costs .
Meanwhile , the report showed that in April, consumer spending on utilities fell 0.1 % after rising 0.8% in the previous month , while spending on goods fell 0.1 % after increasing 1.4% in March.
At the same time the amount of personal income rose in April by 0.3 % in April, which was slightly lower than the March increase - at 0.5% . Last change coincided with forecasts .
The price index for personal consumption expenditures , which is the preferred sensor for Fed inflation rose to a seasonally adjusted 0.2% compared to March and by 0.2% excluding prices for food and energy . In annual terms, the index increased by 1.6 % and 1.4% , respectively.
The cost of the June gold futures on the COMEX today dropped to $ 1243.8 per ounce.
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