Gold prices were little changed on Monday, buoyed by weaker-than-expected U.S. construction spending and manufacturing data that pushed the dollar index lower but pressured by an agreement that averted a government shutdown. U.S. Congressional negotiators hammered out a bipartisan agreement on a spending package to keep the federal government funded through Sept. 30, averting a government shutdown and dampening demand for non-interest paying bullion.
U.S. consumer spending was unchanged in March for a second straight month and a key inflation measure recorded its first monthly drop since 2001, but economists still expect an interest rate increase in June as the labor market tightens.
Gold rose on Friday as forecast-beating euro zone inflation boosted the euro against the dollar, while global stock markets retreated from Wednesday's record highs as concerns about global trade subdued appetite for cyclical assets. The metal remains on track for its biggest weekly drop in seven, however, after appetite for nominally higher-risk assets sharpened early in the week at gold's expense.
The U.S. economy grew at its weakest pace in three years in the first quarter as consumer spending barely increased and businesses invested less on inventories, in a potential setback to President Donald Trump's promise to boost growth.
Gold recovered from a two-week low, buoyed by short-covering on Wednesday as U.S. Treasury yields turned lower and the dollar pared gains after President Donald Trump proposed slashing the U.S. tax rate on corporate profits. Trump proposed cutting the corporate and pass-through business profits tax rate to 15% from 35% or more, as well as offering tax cuts to average Americans in a rough outline of his tax policy goals.