* Gold climbs to 3-month high after gaining 5 pct in January
* China official manufacturing PMI at lowest since 2012
* Global stock markets, U.S. dollar fall
(Updates prices; adds comment, second byline, NEW YORK
dateline)
By Marcy Nicholson and Eric Onstad
NEW YORK/LONDON, Feb 1 (Reuters) - Gold rose to a
three-month high on Monday, extending its recent rally on
worries about global economic growth and hopes for easier
monetary policy after weak factory data in Asia and Europe.
China's official measure of manufacturing in January fell to
the lowest since mid-2012, while factory growth across the euro
zone slowed.
"That China data was disappointing, very weak in both
manufacturing and non-manufacturing, which coupled with the
ongoing turmoil on global markets and uncertainties about growth
going forwards have helped gold to get above the $1,115/20
resistance level," said Robin Bhar, head of metals research at
Societe Generale (PA:SOGN) in London.
Data also showed that U.S. manufacturing activity was
unlikely to recover in the near term, while consumer spending
was flat in December.
Spot gold XAU= was up 1 percent at $1,128.40 an ounce at
2:32 p.m. EST (1932 GMT), after rising to $1,128.70, the highest
since Nov. 3, just short of the 200-day moving average around
$1,130 an ounce.
U.S. gold for April delivery GCcv1 settled up 1 percent at
$1,128 an ounce.
Also supporting prices were the weak U.S. dollar .DXY
against a basket of major currencies and comment by Federal
Reserve Vice Chairman Stanley Fischer, who said that persistent
volatility could hurt U.S. growth and inflation.
USD/
"Today's remarks seem to show some softening in his tone
toward rate hikes, as he notes that he simply 'does not know'
whether a March hike will be appropriate," said Royce Mendes,
director and senior economist at CIBC Capital Markets.
"He concedes that financial market volatility could delay
the tightening that he had anticipated earlier in the year."
Hopes that the Fed will slow the pace of future U.S. rate
increases has aided gold by cutting the opportunity cost of
holding it and keeping a lid on the dollar.
"In the longer term, we still expect the dollar will go
higher ... and we still have three (U.S. interest rate) hikes in
our scenario, but there is uncertainty around that ... and gold
has benefited," ABN Amro analyst Georgette Boele said.
Global stock markets and oil prices fell following the weak
manufacturing reports. MKTS/GLOB
Holdings of the largest gold-backed exchange-traded fund
(ETF), New York's SPDR Gold Trust GLD , increased by about 4
percent in January, the most in a year.
Spot silver XAG= rose 0.7 percent to $14.36 an ounce while
palladium XPD= was up 0.7 percent at $502.01 an ounce. Spot
platinum XPT= was down 0.4 percent at $867 an ounce.