Gold Rallies to $1216 on U.S. Stocks’ Decline

Gold rose on Wednesday, rebounding from the previous day’s nine-month low near $1,200 an ounce, as disappointing U.S. factory data sparked a selloff on Wall Street and prompted investors to seek a safe haven in the yellow metal.

Also underpinning bullion was a steadying U.S. dollar amid a drop in U.S. Treasury yields and weakness in global stocks. Sharply lower airlines and transport-related shares after the first diagnosis of Ebola in the United States also helped send the S&P 500 index down more than 1 percent.

Spot gold had recovered to $1,215 an ounce, up 0.5 percent, after earlier slipping to within 10 cents of the previous day’s nine-month low at $1,204.40. U.S. December gold futures were up $4.90 an ounce at $1,216.50.

CNBC