Gold touched a one-month high on Wednesday after soft U.S. data knocked the dollar lower against a basket of currencies and weighed on stock markets, boosting the metal's appeal as an alternative asset.
A recovery in the dollar had prevented gold from gaining traction after it rebounded last week from its lowest since mid-2013. The dollar's slide on Wednesday helped gold push back to a peak of $1,249.30 an ounce, its highest since Sept. 11.
Spot gold was up 0.7 percent at $1,241 an ounce, while U.S. gold futures for December delivery settled up $10.50 an ounce at $1,244.80 in unusually heavy trading volume, preliminary Reuters data showed.
"It's really economic news and the dollar that predominate for gold," Sharps Pixley Chief Executive Ross Norman said. "We're seeing a fade on economic growth across the board, particularly in Europe ... There are some serious concerns creeping in about disinflation."