Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.3% to close at $1,347.50 after weak factory data eroded the dollar, boosting demand for alternative stores of value.

Manufacturing lapsed into contraction in the New York Fed region in August after expanding the month before, raising more doubts about the economy's expansion in the third quarter. The first of a series of regional Fed reports on business conditions to be released in coming weeks, the Empire State Survey is as a harbinger of the national ISM factory survey due at the end of the month.

The dollar rolled back as traders speculated that the weak factory data, combined with Friday's subpar retail sales report, will push the next rate hike from the Fed into 2017. A soft dollar supports gold and other commodities denominated in it for international trade by making them less expensive overseas.

U.S. equities also rose on the dimming rate view, with Dow and S&P 500 picking up 0.3%. Oil prices jumped 2.6%, rallying energy stocks, after Russia's energy minister signaled willingness to enter discussions with OPEC over limiting production.

The other precious metals were mostly higher, with silver and palladium adding 0.7% and 0.2%, while platinum slid 1.2%.

At the Comex close: December gold gained $4.30 to $1,347.50; September silver climbed 14 cents to $19.85; October platinum dropped $13 to $1,116.30; and September palladium added $1.45, to $692.25 an ounce.