WASHINGTON (dpa-AFX) - Gold prices climbed higher on Monday as the dollar slipped after recent data showed the Fed's preferred measure of inflation posted the smallest increase this year, raising hopes for an interest rate cut sometime soon.
The dollar index dropped to 104.15 before recovering slightly to 104.21, still down 0.44% from the previous close.
Gold futures for June ended higher by $23.70 or about 1.02% at $2,346.60 an ounce.
Silver futures for June ended up by $0.344 or about 1.15% at $30.641 an ounce.
Copper futures climbed to 4.6620 per pound, gaining $0.600 or about 1.3%.
Data from the Commerce Department showed consumer prices in the U.S. increased in line with economist estimates in the month of April, while core consumer prices edged up by slightly less than expected.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3% for the third straight month in April, matching economist estimates.
Meanwhile, the report said the core PCE price index, which excludes food and energy prices, crept up by 0.2% in April after rising by 0.3% in March. Economists had expected another 0.3% increase.
The annual rates of growth by the PCE price index and the core PCE price index were both unchanged from the previous month at 2.7% and 2.8%, respectively. The readings matched expectations.
In economic releases today, final data from the purchasing managers' survey by S&P Global showed U.S. manufacturing sector grew in May led by a rebound in new orders, albeit marginal, that led to faster growth in production and employment.
The seasonally adjusted S&P Global US Manufacturing Purchasing Managers' Index rose to 51.3 in May from the 50.0 no-change mark in April. The final PMI reading came in above the flash score of 50.9.
The U.S. monthly jobs report is likely to be in the spotlight this week, along with reports on manufacturing and service sector activity.
The jobs data holds significance as it will be the last economic report before the Federal Reserve's upcoming monetary policy meet on June 11-12.
The European Central Bank, scheduled to announce its monetary policy on Thursday, is expected to begin cutting interest rates from historic highs.
Economists expect a quarter percentage point reduction, taking the key deposit rate to 3.75% from its current record level.
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