Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.6%, closing at a two-week high just under $1,140, as weaker global manufacturing data caused a sell-off in equity markets, spurring demand for safe havens.

Factory activity in China fell last month to the lowest level in three years, according to official PMI data, signaling contraction in this crucial sector of the world's second largest economy. U.S. manufacturing expanded at the slowest pace in two years, according to the ISM, as the strong dollar and slower growth crimp demand for U.S. exports. And JPMorgn's Global PMI, combining factory data from the six largest economies, sank to its lowest reading since mid-2013.

Wall Street tumbled amid concerns about slowing global growth. All three major U.S. indexes were down around 2.5%, slipping into the red for the year, and the Global Dow dropped 2.3%. U.S. Treasury bonds gained alongside gold on safe-haven inflows.

The dollar declined against major rivals as traders speculate that the downbeat data may lower the odds of a rate hike this month. Further damping expectations, Boston Fed President Eric Rosengren said today that low inflation and slowing global growth are reasons to keep rates "fairly low."

The other precious metals were mixed on the day. Silver picked up 0.2% while platinum and palladium, more directly tied to industry, fell 0.2% and 3.8%, respectively.

At the Comex close: December gold gained $7.30 to $1,139.80; December silver picked up more than 3 cents to $14.62; October platinum dipped $2.10 to $1,008.40; and December palladium lost $23.05 to $579.20 an ounce.