RTTNews - The price of gold extended a seven-week high on Monday, boosted by a weaker U.S. dollar. Soaring crude oil prices also boosted the metal.
Gold for immediate delivery rose to $956.60 per ounce, up $2.90 for the day. Prices touched as high as $964 earlier in the session.
The dollar continued to plunge against the euro, falling below 1.4400 to its lowest level since December. The greenback also hit its lowest level of the year versus the British pound. Gold usually moves opposite the dollar because of the precious metal's hedge value.
Crude oil for September delivery rallied to $71.58 per barrel, up $2.13 on the session. Prices touched a seven-week high of $72.10 earlier in the day.
In economic news, the Institute for Supply Management said its index of activity in the manufacturing sector rose to 48.9 in July from 44.8 in June, although a reading below 50 indicates a contraction. Economists had been expecting a more modest increase to a reading of 46.5.
Meanwhile, the U.S. Commerce Department revealed that construction spending rose 0.3 percent in June. This followed a revised 0.8 percent slide in May. Private construction slipped 0.1 percent, though residential construction spending was up 0.5 percent.
Personal income and spending is coming at 8:30 a.m. ET Tuesday. Personal income is expected to drop 1% in June after a 1.4% rise in the prior month. Personal spending is forecast to rise 0.3% after gaining 0.2% in May.
Pending home sales data is coming at 10 a.m. ET. Sales are expected to be up 0.3% in June after rising 0.1% in May.
Last week, gold gained $2.40 amid choppy trading after surging more than $18 on Friday. The metal rallied about 2.8% in the month of July.
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