Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.6% to close at $1,131.50, stopping a two-day slide as weak factory reports in the U.S. and China weighed on equities and the dollar, boosting safe-haven demand.

Markit's preliminary PMI report for September showed U.S. manufacturing stuck near a two-year low for the second straight month, punished by a strong dollar and weaker growth overseas. Job creation also slowed to its worst reading in 14 months. Chinese factory output was even worse, plunging into contraction for its lowest reading in nearly seven years.

Hampered by declines in manufacturing, exports, and business investment, U.S. GDP growth is just 1.5% in the third quarter, according the Atlanta Fed's GDPNow forecasting model, well-below consensus projections of 2.5%.

The soft data pulled stocks lower, with the Dow and Global Dow dropping 0.3% and 0.5%, respectively. The dollar also retreated as traders reassessed positions on the timing of the Fed's first rate hike. A weaker dollar supports gold and other commodities denominated in it for international trade by making them less expensive to foreign buyers.

The other precious metals were mostly higher. Silver added 0.2% while platinum slipped 0.5% and palladium surged a whopping 5.7%. More closely tied diesel engine production, platinum was hit much harder than palladium by the Volkswagen emissions scandal.

At the Comex close: December gold gained $6.70 to $1,131.50; December silver added 3 cents, to $14.79; October platinum slid $5.10 to $932.40; and December palladium surged $34.75 to $645.70 an ounce.