Gold was on the rise this afternoon after the US dollar pulled back following an early rally against the euro. Europe's single currency was hit by weak manufacturing data released by Markit today.
The figures showed that the PMI indexes for Germany and France hit the lowest levels in 3 and 33 months respectively, adding to concerns about the impact of the European debt crisis on the euro zone's two largest economies.
A separate report revealed that the jobless rate in the euro zone rose to 10.8 percent last month from 10.7 percent in February.
Later in the session, the US dollar retreated despite a better than expected update on the institute for Supply Management's (ISM) US manufacturing index, which rose from 52.4 in February to 53.4 in March compared to expectations of a reading of 53.
Positive US data tends to be supportive for the US dollar as it reduces the likelihood of another round of quantitative easing from the Federal Reserve, which would drive up inflation and weaken the greenback.
Gold traded at US$1,683/oz this afternoon, up US$14.5 from Friday’s close. Other precious metals were headed in the same direction with silver tacking on 94 cents to reach US$33.22/oz and platinum rallied US$15 to US$1,650/oz.
