PRECIOUS-Gold rises as global growth worries boost safe-haven appeal

* U.S. manufacturing ISM survey hits decade low
* Stocks hit one-month low
* Dollar recovers after Tuesday's drop

(Updates prices)
By Brijesh Patel
Oct 2 (Reuters) - Gold gained on Wednesday after
weaker-than-expected U.S. economic data exacerbated concerns
about global growth and increased prospects of further interest
rate cuts, driving investors towards the safe-haven metal.
Spot gold XAU= was up 0.4% at $1,484.75 per ounce as of
1106 GMT. Prices had hit a near two-month low of $1,458.50 on
Tuesday, before climbing as much as 1% during the session.
U.S. gold futures GCv1 edged 0.1% higher to $1,490 an
ounce.
"Gold has found multiple lifelines. We had really
disappointing economic data from the United States, this is
flashing warning signs and fuelling concerns of slowing economic
growth, which is also fuelling speculation of lower interest
rates," said FXTM analyst Lukman Otunuga.
U.S. manufacturing activity tumbled to a more than 10-year
low in September as lingering trade tensions weighed on
exports. The weak economic report intensified global growth fears,
sending global shares to a one-month low and raising
expectations for further monetary policy easing by the U.S.
Federal Reserve. MKTS/GLOB
"The precious metal is positioned to push higher this week
if risk aversion remains a dominant market theme. Looking at the
technical picture, an intraday breakout above $1,485 should
inspire an incline towards the psychological $1,500 level,"
FXTM's Otunuga said.
The U.S. data also prompted President Donald Trump to lash
out at the Fed, saying the central bank has kept interest rates
"too high", with a strong dollar hurting U.S. factories.
USD/
The poor data lifted the Fed funds rate futures price
sharply, with the November contract FFX9 now pricing in about
an 80% chance the U.S. Federal Reserve will cut interest rates
during a meeting on Oct. 30, compared to just over 50% before
the data.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar, making
gold cheaper for investors holding other currencies.
Meanwhile, the dollar .DXY rose, recovering overnight
losses and stemming bullion's advance. USD/
Markets now await U.S. ADP employment numbers due at 1215
GMT, which will set the stage for non-farm payroll numbers on
Friday.
"I think the market does not want to rush ahead of the
non-farm payroll data in case there is a surprise hit," said
AxiTrader market strategist Stephen Innes.
"Investors are a bit scared. This will probably inhibit
people from jumping back into the (gold) bandwagon over the near
term. They are going to need some convincing."
Among other precious metals, silver XAG= gained 0.2% to
$17.26 per ounce.
Platinum XPT= edged 0.1% higher to $877.09 an ounce, while
palladium XPD= rose 0.8% to $1,664.90.