Gold prices rose 1.5 percent to a two-week high on Tuesday, as signs of a slowing US economy fuelled investors' expectation that central banks around the world will introduce new monetary stimulus. The metal also benefited from inflation-hedge buying because of sharp rallies in crude oil on tensions over Iran's nuclear program rose, and as grain prices climbed as a drought in the US Midwest spurred supply fears.
Gold has gained almost 5 percent in the past two sessions after data showed US manufacturing shrank in June for the first time in nearly three years. Spot gold rose 1.5 percent on the day to $1,619.90 an ounce by 2:23 pm EDT (1823 GMT). US gold futures for August delivery settled up $24.10 an ounce at $1,621.80. Silver rose 2.9 percent to $28.27 an ounce. In platinum group metals, platinum rose 2.3 percent to $1,482.25, while palladium was up 3.8 percent at $593.20.