RTTNews - The price of gold finished modestly lower on Monday as a sharp rise in global stocks outweighed a drop for the U.S. dollar. The drop took the metal slightly off a three-month high.

June gold settled at $978.10, down $2.20 on the session. Prices earlier touched as high as $990.20 before later dipping as low as $975.40.

Gold's losses were limited as the U.S. dollar extended multi-month lows against the euro and sterling. The metal usually moves opposite the dollar because of its hedge value.

The Institute for Supply Management showed that the index of activity in the manufacturing sector rose to 42.8 in May from 40.1 in April, with a reading below 50 indicating a contraction. Economists had been expecting the index to edge up to a reading of 42.0.

Commerce Department data showed that construction spending increased by 0.8 percent to an annual rate of $968.7 billion in April following a revised 0.4 percent increase in March. Economists had expected spending to decrease by about 0.8 percent.

A separate Commerce Department report showed that personal income increased by 0.5 percent in April following a revised 0.2 percent decrease in March. Personal spending edged down 0.1 percent in April after falling by a revised 0.3 percent in the previous month.

Earlier, struggling automaker General Motors (GM) said that it has filed for bankruptcy under Chapter 11, as widely expected.

Gold had gained $17.30 on Friday. The metal finished the week up nearly $20, rising for a third straight week, and rose about 9% in May.

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