Investing.com - Gold prices were little changed near their highest level in around seven weeks on Tuesday, as market players digested a key batch of U.S. economic data to gauge the strength of the world's largest economy and how it will impact the Federal Reserve's view on monetary policy.
U.S. consumer spending barely rose in June as income failed to increase for the first time in seven months, pointing to a moderate pace of growth in consumption in the third quarter.
The report also showed that personal consumption expenditures price index, excluding food and energy, rose 0.1%. In the 12 months through June, the so-called core PCE price index increased 1.5%.
The core PCE is the Federal Reserve's preferred inflation measure. The U.S. central bank has a 2% target.
Later in the session, the ISM will publish its manufacturing survey for July. Data on construction spending and auto sales are also on the agenda.
Comex gold futures for August were at $1,266.62 a troy ounce by 9:00AM ET (1300GMT), up 20 cents. It touched its highest since June 14 at $1,270.80 in the prior session.
Prices of the yellow metal ended marginally lower on Monday, but closed out a solid July.
Gold logged a gain of 2.2% last month, its best monthly performance since February, as fading expectations for a third Fed rate hike this year combined with deepening political turmoil in the White House sent the dollar to 15-month lows.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Elsewhere on the Comex, silver futures dipped 9.0 cents, or around 0.5%, to $16.70 a troy ounce. It rose to $16.87 on Monday, a level not seen since June 29.