Gold Jun '13 (GCM13)
Gold Futures Market News and Commentary
The dollar index (DXY00) rose by +0.24% on Wednesday. The dollar moved higher on Wednesday due to signs of strength in the US economy after July personal spending and income rose more than expected and Q2 personal consumption was revised upward. Higher bond yields on Wednesday also strengthened the dollar’s interest rate differentials.
Gains in the dollar were limited on Wednesday after July capital goods new orders nondefense ex-aircraft and parts, a proxy for capital spending, rose less than expected. Also, the July core PCE price index, the Fed's preferred inflation gauge, advanced in line with expectations, a dovish factor for Fed policy. In addition, WTI crude oil fell to a 1.5-week low, lowering inflation expectations and potentially persuading the Fed to loosen monetary policy, a negative factor for the dollar.
US July personal spending rose +0.2% m/m, stronger than expectations of +0.1% m/m. Also, July personal income rose +0.4% m/m, stronger than expecta... Read more
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The dollar index (DXY00 ) rose by +0.24% on Wednesday. The dollar moved higher on Wednesday due to signs of strength in the US economy after July personal...
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