Gold price rose on concerns over the slowdown in the Chinese economy and over the situation in the Middle East. Saudi Arabia, Bahrain and Sudan had broken off diplomatic ties with Iran.
Kuwait said that it would recall its ambassador from Iran.
The situation escalated after Saudi Arabia executed a Shia Muslim cleric.
The Chinese Markit/Caixin manufacturing PMI declined to 48.2 in December from 48.6 in November, missing expectations for a reading of 49.0. Production fell in December, partly driven by a further drop in total new work. Companies continued to shed their staff.
February futures for gold on the COMEX today rose to 1081.50 dollars per ounce.