Gold is poised to decline after data showed that China’s manufacturing expanded for the first time since July, signaling that the slowdown in the second-largest economy is easing and curbing the need for additional stimulus. Gold for immediate delivery was little changed at $1,721.65 an ounce at 11:30 a.m. in Singapore. The price dropped 2.9 percent last month, the first decline since May. Bullion for December delivery climbed as much as 0.2 percent to $1,722.60 an ounce on the Comex, and was at $1,722.30. The Purchasing Managers’ Index rose to 50.2 in October from 49.8 in September, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today. A reading above 50 indicates expansion. The report adds to expectations of a pickup in expansion this quarter after industrial production, exports and retail sales accelerated in September. “We might see prices come off� on improving data, said Alexandra Knight, an analyst at National Australia Bank Ltd. “Investors probably overreacted to central bank announcements for further stimulus. They were a bit too optimistic at the time, and we’re starting to see an unwinding of that.� A separate purchasing managers’ index today by HSBC Holdings Plc and Markit Economics showed manufacturing shrank at a slower pace. The final reading for the survey, which covers more than 430 companies and is weighted more toward smaller businesses, was at an eight-month high of 49.5, from 47.9 in September and higher than a preliminary reading last week. Record Holdings Holdings in gold-backed exchange-traded products expanded to a record 2,588.24 metric tons yesterday, according to data tracked by Bloomberg. Aggregate volumes on the Comex almost doubled yesterday, according to data compiled by Bloomberg, as U.S. equity markets reopened after Hurricane Sandy caused a two- day shutdown, the longest weather-related closure since 1888. Gold of 99.99 percent purity climbed as much as 1.5 percent to 349 yuan a gram on the Shanghai Gold Exchange, and was at 345.75 yuan. Trading volumes were 2,792 kilograms yesterday from 2,725 kilograms on Oct. 30. Spot silver gained 0.4 percent to $32.3675 an ounce. Platinum for immediate delivery rose as much as 0.4 percent to $1,575 an ounce and was at $1,574, while palladium climbed 1.2 percent to $612 an ounce. To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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