Gold price increased on concerns over the global slowdown, but declined later due to a selloff in commodities. The Japanese Nikkei stock index fell almost 4%, while China's Shanghai Composite declined more than 8%. European and U.S. sticks are also trading lower.

Concerns over a slowdown in the Chinese economy weighed on markets.

China allowed pension funds to invest in domestic stocks. Pension funds are now able to invest up to 30% of their net assets in domestic stocks.

China hopes with this decision to boost the liquidity on the stock market and to stop a massive selloff.

According to the newspaper the Financial News, the People's Bank of China (PBoC) plans to use a mix of innovative monetary policy tools to inject liquidity into the financial system. The central bank wants to make "flexible use" of the new tools.

The new tools should replace foreign-exchange purchases.

September futures for gold on the COMEX today decreased to 1156.20 dollars per ounce.