Investing.com -- Gold futures inched down on Wednesday amid a stronger dollar, as mixed U.S. inflation data for October largely lacked the firepower to sway policymakers at the Federal Reserve as it weighs whether to raise short-term interest rates at a critical meeting next month.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded in a broad range between $1,067.30 and $1,080.40 an ounce before settling at $1,070.30, down 3.50 or 0.33% on the session. After bouncing off fresh five year lows late last week, gold has closed lower in three of the last four sessions. More broadly, the precious metal is down roughly 8% over the last month of trading.
Gold likely gained support at $1,064, the low from Nov. 18 and was met with resistance at $1,110.70, the high from Nov. 5.
On Wednesday morning, the U.S. Commerce Department's Bureau of Economic Analysis said U.S. personal income last month rose by 0.4%, in line with consensus estimates. It followed an upwardly revised increase of 0.2% in September. Consumers spending, meanwhile, ticked up by 0.1% in October, following a 0.1% increase a month earlier.
The PCE Price Index also inched up 0.1% on the month falling within the consensus range between -0.1% and 0.2%. The Core PCE Index, which strips out food and energy prices, remained unchanged, after gaining 0.1% in September. On a yearly basis, the core reading stood at 1.3%, also unchanged from a month earlier. The Core PCE Index is the Fed's preferred gauge of inflation as it weighs whether to raise short-term interest rates for the first time in nearly a decade.
Over the last several weeks, a number of key policymakers from the Federal Open Market Committee have sent strong indications that it is ready to tighten policy as the economy and labor market continues to show improvement. Earlier this month, Fed vice chairman Stanley Fischer said he believes that long-term inflation will move back toward its targeted goal of 2% as temporary factors from a stronger dollar and weaker energy prices continue to recede.
Elsewhere, the factory sector is showing signs of renewed strength after durable goods orders surged by 3% in October, significantly above consensus estimates of gains of 1.5%. Orders in the airline sector soared 200% in connection with a prominent air show in Dubai. Consumer sentiment, meanwhile, fell back to 91.3 from a mid-month reading of 93.1, ahead of the start of the holiday shopping season on Friday.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, jumped to an intraday high of 100.22, before falling back below 100 in U.S. afternoon trading. On Monday, the index eclipsed 100 for the first time in seven months. Dollar-denominated commodities such as gold become more expensive for foreign purchasers as the dollar appreciates.
Silver for December delivery lost 0.029 or 0.17% to 14.130 an ounce.
Copper for March delivery dipped 0.020 or 1.00% to 2.049 a pound.