The gold price edged higher on Monday as investors took cover in the precious metal following dismal US manufacturing data.
Prices ticked up 0.48% to US$1,118 an ounce after the Empire State manufacturing index plunged to a six-year low.
The Empire State general business conditions index fell to a reading of -14.9, from +3.9 in July, marking the worst level since April 2009, the New York Fed said.
The index fell way short of the +4.5 predicted by some economists.
The news sent stocks down and sparked speculation that a US interest rate rise was unlikely in the near-term.
Analysts said China's devaluation of the yuan could also delay a rate hike by the Fed, thereby underpinning the yellow metal's price.
Gold, which offers no interest payments, could lose out to assets with better returns if rates rise.
The rise in the gold price came as a relief to bulls after billionaire hedge fund manager John Paulson cut his bullion holdings for the first time in two years last week.
Jasper Lawler at CMC Markets said: "Gold and silver prices were slightly higher as a hedge to falling stock markets, but have been travelling sideways since last week’s break higher."
FXTM chief market analyst Jameel Ahmad said: “Now that gold has managed to climb back above that critical psychological $1100 level, the outlook for further gains is more positive but this would also depend on how investors react to this Wednesday’s highly-anticipated FOMC Minutes.
“If the FOMC release suggests that voting members are still sitting on the fence and refusing to put a timeframe on when to begin raising interest rates then this could provide some inspiration to gold buyers.”
Major shares
Randgold Resources (LON:RRS) down 20p at 3974p
Fresnillo (LON:FRES) up 5p at 671.5p
Anglo American (LON:AAL) down 2.9p at 753.9p