Gold is currently at $1,117.40 (-0.09%) as a stronger U.S. dollar limited gains generated by weak U.S. manufacturing data. NY Fed Empire State manufacturing index fell to -14.92 in August, compared to 3.86 in July. The new orders sub-index, which fell to its lowest level since November 2010, was the biggest contributor to this drop.

Investors remain focused on U.S. interest rates. Strong employment growth and improving retail sales argue in favor of an imminent rate increase. The Federal Reserve will publish its latest Meeting Minutes tomorrow. Market participants expect to see clues on policymakers' intentions.