The price of gold rose sharply, stepping back from the two-month low, move caused by the fall of the dollar in response to the disappointing data on business activity in the US.

The report submitted by the Institute for Supply Management (ISM), showed that in August manufacturing sector has deteriorated markedly, exceeding thus the average forecast. The PMI was 49.4 points versus 52.6 points in July. It was expected that this figure will drop to 52 points. More detailed information is shown: the index of stocks in August fell to 49.0 against 49.5 in July, while the production index fell to 49.6 from 55.4. The new orders index plummeted to 49.1 against 56.9 in July, while the employment index fell to 48.3 from 49.4. Meanwhile, the price index fell to 53.0 from 55.0 in July

Analysts said the data from the ISM reinforced fears about the economy in general, but it is unlikely to have a strong impact on the Fed's plans to tighten policy.

"If tomorrow's NFP data will be good, the price of gold may fall to $ 1260- $ 1270, as markets will increasingly rely on a rate hike in September," - said Shu Jiang, principal analyst at Shandong Gold Group.

The cost of the October futures for gold on COMEX rose to $ 1312.8 per ounce.