By Nick Godt, MarketWatch
NEW YORK (MarketWatch) -- Gold futures rose early on Monday, receiving a lift from U.S. data showing rising income and spending, and with higher crude-oil prices lifting the appeal of gold as a hedge against inflation.
Gold for April delivery was recently up $6.10, or 0.6%, to $1,089.90 an ounce in electronic trade.
The Commerce Department said spending rose 0.2% in December and incomes rose 0.4%. Spending was weaker than expected, while incomes were higher. It also showed consumer prices rose 0.1%. In the past year, consumer prices are up 2.1%, while core prices are up 1.5%. Read more on consumer spending and income.
On Friday, gold fell slightly as the dollar rallied on the back of strong U.S. economic-growth and consumer-sentiment reports, reducing the value of the precious metal as a hedge against weak currencies.
But on Monday, upbeat manufacturing data for the euro zone helped lift the euro and pressure the dollar.
The dollar index (DXY 79.24, -0.20, -0.26%) , which measures the U.S. unit against a basket of six major currencies, fell 0.3% to 79.24.
Still ahead will be a key report on U.S. manufacturing.
