Gold futures on the COMEX division of the New York Mercantile Exchange finished higher Thursday, supported by better-than-expected manufacturing data from China.

The most active gold contract for December delivery rose 0.7 dollars, or 0.05 percent, to settle at 1,370.8 dollars per ounce, after tapping a high above 1,380 dollars.

China's manufacturing activity is swinging out of contraction this month, according to a preliminary reading of HSBC's Purchasing Managers' Index (PMI) released Thursday. Market analysts say the country's economy is growing faster than the consensus had been expecting, which is bullish for gold trading in the day.

China's manufacturing PMI, compiled by HSBC and Markit, rebounded to a four-month high of 50.1 from a final reading of 47. 7 in July, an 11-month low, according to MarketWatch report. A reading below 50 indicates contraction in economic activity, while one above 50 shows expansion.

The August PMI was above the consensus expectation for a reading of 48. The stronger data and general upbeat sentiment across financial markets offset most of the pressure from a stronger U.S. dollar.

Silver for September delivery rose 7.2 cents, or 0.31 percent, to close at 23.035 dollars per ounce.