Gold price rose on increasing demand for safe-haven assets as global stocks and oil prices declined. A weaker U.S. dollar also supported gold. The U.S. dollar fell against other currencies after the release of the weak U.S. economic data. Markit Economics released its preliminary services purchasing managers' index (PMI) for the U.S. on Wednesday. The U.S. preliminary services purchasing managers' index (PMI) dropped to 49.8 in February from 53.2 in January. It was the lowest level since October 2013. Analysts had expected the index to rise to 53.5.

The U.S. Commerce Department released new home sales data on Wednesday. New home sales slid 9.2% to a seasonally adjusted annual rate of 494,000 units in January from 544,000 units in December. Analysts had expected new home sales to reach 520,000 units.

March futures for gold on the COMEX today rose to 1247.50 dollars per ounce.