As equities selling continued gold moved slightly higher yesterday with investors buying the precious metal as an inflation hedge against rising prices. The move was probably triggered by stronger economic data with the Institute for Supply Management reporting its manufacturing index for August at 52.9 from 44.8 in July showing US factory activity expanded for the first time since January 2008. However, the gains were marginal due to pressure from declining crude prices and a higher US currency. Silver also moved up supported by safe heaven buying following concerns about stocks' performance during September and October.
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