By Carla Mozee, MarketWatch

LOS ANGELES (MarketWatch) — Gold futures rose Monday, with the second half of the year starting with modest gains after prices were mauled during the second quarter.

Bloomberg Enlarge Image
Gold kicks off second half of 2013 with gains.
Gold for August delivery GCQ3 +1.16% rose $19.80, or 1.6%, to $1,243.30 an ounce in electronic trade.

The precious metal on Friday closed the second quarter with loss of 23%, according to FactSet data, the worst quarterly decline since modern trading began in the mid-1970s.

“Strengthening of the [U.S. dollar], unwinding of the global carry-trade and tame global inflation,” impacted the commodity complex, Deutsche Bank told clients late last week in a report about the metals and mining sector.

Talk of the U.S. Federal Reserve slowing the pace of monetary stimulus and slower-than-expected Chinese growth also influenced the sector, it said.

Separate reports released Monday showed further slowing in China’s manufacturing sector in June. China is a major consumer of gold.

The Chinese government reported its manufacturing Purchasing Managers’ Index (PMI) dropped to 50.1 from 50.8 in May. A separate survey from HSBC showed its own monthly PMI declining to 48.2 in June from 49.2 in May.

A reading below 50 shows a deterioration in activity, while one above signals an improvement.

Later Monday, investors will assess manufacturing activity reports from the euro zone and the U.S.

Yields on U.S. government bonds have recent spiked, and the greenback has pushed higher on expectations that an improvement in the U.S. economy will lead the Fed this year to taper the $85-billion-a-month pace of bond purchases. Those moves have cut into the investment appeal of gold, which also suffered a 4.8% loss during the first quarter of 2013.

In other moves Monday, September silver SIU3 +0.03% rose 26 cents, or 1.3%, to $19.71 an ounce, and the October platinum contract PLV3 +1.28% advanced $8.50, or 0.6%, to $1,345.40 an ounce.

September copper HGU3 +2.40% gained 4 cents, or 1.2%, to $3.09 a pound, and September palladium PAU3 +2.52% moved up $13.25, or 2%, to $673.95 an ounce.

Carla Mozee is a reporter for MarketWatch, based in Los Angeles. Follow her on Twitter @MWMozee.