Gold price increased on a weaker U.S. dollar and as U.S. stock markets declined. The preliminary U.S. manufacturing purchasing managers' index (PMI) for the U.S. weighed on the U.S. dollar. The U.S. preliminary manufacturing purchasing managers' index remained unchanged at 53 in September, in line with expectations. It is the lowest level since October 2013.

A reading above 50 indicates expansion in economic activity.

Higher expansion in output was offset by slower pace of expansion in new orders and employment.

Concerns over the slowdown in the Chinese economy also supported gold price. The Chinese preliminary Markit/Caixin manufacturing Purchasing Managers' Index (PMI) decreased to 47.0 in September from 47.3 in August, missing expectations for a rise to 47.5, and hitting a 78-month low.

The output index fell to 45.7 in September from 46.4 in August, reaching a 78-month low. New orders, new export orders, employment, output prices and input prices also declined.

October futures for gold on the COMEX today rose to 1129.90 dollars per ounce.