GEM Capital Limited Follows Gold Markets While Tensions in the Middle East Rise.

Chaoyang District, China, January 29, 2016 (Newswire.com) - Gold gathered more than 1 percent recently, elevated by rising tensions in the Middle East and a sharp descent in stocks and the dollar following weak Chinese data that raised concerns over global growth.

The move shadowed a weekend attack of the Saudi embassy in Tehran in reply to the kingdom's execution of a prominent cleric.

Platinum group metals, which as largely industrial commodities are more exposed than gold to economic weakness, dropped sharply after Chinese manufacturing surveys weakened any confidences for a regaining in the sector.

Spot gold was up 1.2 percent at $1,073.20 an ounce at 1025 GMT, while U.S. gold futures for February delivery were up $12.30 an ounce at $1,072.50. reuters.com

The Federal Reserve raised U.S. rates for the first time in December, and is expected to grow them further this year. Higher rates dent demand for non-interest-paying gold, while supporting the dollar.

Gold has often been seen as an alternative investment during times of geopolitical and financial uncertainties. The gold price lost 10% last year. The metal faces another harsh year in 2016 as U.S. interest rates are projected to rise and the dollar strengthen, with analysts expecting further price drops stated Suzie Fong of GEM Capital Limited.