Investing.com – Gold futures erased gains on Monday, pulling back from a four-day high and spot gold prices extended their decline as increased risk appetite dampened the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,789.75 a troy ounce during U.S. morning trade, shedding 0.31%.
It earlier fell as much as 0.65% to trade at a daily low of USD1,779.25 a troy ounce.
Spot gold prices, meanwhile tumbled 3.14% to trade at USD1782.90 a troy ounce, surrendering nearly all of the previous session’s 3.2% gain.
The U.S. Bureau of Economic Analysis said earlier that consumer spending rose at its fastest pace in five months in July, climbing by 0.8%. Analysts had expected consumer spending, which accounts for nearly 70% of U.S. economic activity, to rise 0.5%.
Personal income rose by 0.3% in July, short of expectations for a 0.4% gain, while the core personal consumption expenditure price index rose by 0.2%, broadly in line with expectations.
The upbeat consumer spending data overshadowed a report showing that U.S. pending home sales fell 1.3% in July, surpassing expectations for a 1.0% decline.
Despite the pullback in gold prices, Wall Street investment bank Morgan Stanley said that it continued to favor gold as “an insurance policy against a rising probability of worsening global systemic risks.”
The lender said in a report earlier that the recent price decline provided a “buying opportunity” for investors wanting to enter the market.
Gold futures rose as much as 1.85% earlier after Federal Reserve Chairman Ben Bernanke said Friday that the central bank remained prepared to implement fresh stimulus measures to support the U.S. economy.
Elsewhere on the Comex, silver for December delivery edged 0.49% lower to trade at USD40.80 a troy ounce, while copper for December delivery fell 0.47% to trade USD4.092 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,789.75 a troy ounce during U.S. morning trade, shedding 0.31%.
It earlier fell as much as 0.65% to trade at a daily low of USD1,779.25 a troy ounce.
Spot gold prices, meanwhile tumbled 3.14% to trade at USD1782.90 a troy ounce, surrendering nearly all of the previous session’s 3.2% gain.
The U.S. Bureau of Economic Analysis said earlier that consumer spending rose at its fastest pace in five months in July, climbing by 0.8%. Analysts had expected consumer spending, which accounts for nearly 70% of U.S. economic activity, to rise 0.5%.
Personal income rose by 0.3% in July, short of expectations for a 0.4% gain, while the core personal consumption expenditure price index rose by 0.2%, broadly in line with expectations.
The upbeat consumer spending data overshadowed a report showing that U.S. pending home sales fell 1.3% in July, surpassing expectations for a 1.0% decline.
Despite the pullback in gold prices, Wall Street investment bank Morgan Stanley said that it continued to favor gold as “an insurance policy against a rising probability of worsening global systemic risks.”
The lender said in a report earlier that the recent price decline provided a “buying opportunity” for investors wanting to enter the market.
Gold futures rose as much as 1.85% earlier after Federal Reserve Chairman Ben Bernanke said Friday that the central bank remained prepared to implement fresh stimulus measures to support the U.S. economy.
Elsewhere on the Comex, silver for December delivery edged 0.49% lower to trade at USD40.80 a troy ounce, while copper for December delivery fell 0.47% to trade USD4.092 a pound.