September is here, but already gold seems to be taking a step backward. The yellow metal fell to an 11-week low today, touching down at $1,261.80 per ounce. For the most part, gold was underpinned by worries about the stand off between Russia and the west over Ukraine as well as unrest in the Middle East; however, any assistance those factors might have given the metal was offset by a stronger dollar and weak physical demand from China. As Reuters reported, in early morning trade, "gold's losses snowballed, with more than 10,000 lots — or one-third of the volume at the time — changing hands after the yellow metal fell below key technical support at $1,275 an ounce and the Aug. 21 low at $1,273.06." The yellow metal continued on its downward spiral throughout the morning as the dollar climbed to its highest since January against a basket of 10 currencies. Pushing the dollar up was data showing that US manufacturing in August grew at its fastest pace in three years, which renewed hopes for the economy. "Good economic data and concern about the U.S. raising rates is keeping gold under pressure," Tommy Capalbo, a broker at Newedge Group, told Bloomberg, adding that the positive data has indeed overshadowed any political concerns. Commenting on gold's descent, Ross Norman, CEO of Sharps Pixley, stated "[i]t's when the dollar hits big numbers that gold gets punished and this is clearly one of those moments." By way of explaining investors' behavior, Norman said that "[t]here is a lot to be concerned about on the political and economic front (but) people tend to get inured to the idea of bad news and it doesn't affect them anymore."