Gold climbed for a second day as sluggish economic growth and tensions between Saudi Arabia and Iran urged traders to return to haven assets.

Slowing manufacturing in China ignited a sell-off that stopped trading in Shanghai. Ties between Saudi and Iran worsened after the kingdom executed 47 men, including a Shia religious leader and a convicted al-Qaeda leader.

Bullion for immediate delivery closed at $1,076.65, up 0.2%. Bullion of 99.99% purity climbed to 227.10 yuan a gram ($1,083.42 an ounce), up 1%. On Monday, holdings in gold exchange-traded products dropped to 1,463.4 tons.

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