Gold rose on Thursday as bullish Chinese manufacturing data boosted the nation's inflation-hedge appeal, but bullion's gains looked vulnerable as a better global economy and the Federal Reserve's planned scaling back of its stimulus program should weigh down prices.
Renewed labor unrest in South Africa, the world's top platinum producer and a major supplier of palladium, sent platinum group metals prices sharply higher. Bullion trade was choppy in below-average volume after data showed that U.S. jobless claims last week held near a six-year low and U.S. manufacturing activity rose this month, suggesting the economy is starting to find firmer footing.
China's Purchasing Managers' Index (PMI), a closely watched survey of the country's manufacturers, showed that efforts by the world's second-largest economy to halt a slide in economic growth might be paying off.