GOLD and most of the precious metals ended higher after getting an early-session lift from news of China's $US855 billion stimulus plan.
But the precious metals gave up much of their gain as the day wore on and equities slid due to ongoing economic worries, traders and analysts said.
December gold rose $US12.30 to $US746.50 an ounce on the Comex division of the New York Mercantile Exchange but backed down from an early-session $US768.90 high. December silver rose US25.7 cents to $US10.22 but dropped back from a $US10.535 peak.
"We were higher off of the Chinese stimulus package," said one New York trader.
Against this backdrop, crude oil early in the session was around $US4 a barrel stronger and the US dollar was on the defensive, both of which tend to support gold, said Patrick Lafferty, Commodity Trading Advisor with MF Global.
"But everything corrected, led by equities," Mr Lafferty said.
Around the time gold floor-trading closed in New York, crude oil was marginally lower and the US dollar recouped most of its early losses. The Dow industrials were around 65 points lower after trading higher early in the session.
Several traders commented that some scepticism about the economy crept back into the markets. A trader of the platinum group metals, which like gold, initially rose and then faded, said the commodities underwent a "subtle, slow slide" as stocks fell back.
In particular, the trader cited an increased bailout package for AIG and continued concerns about the weak auto sector, especially as Deutsche Bank and Barclays cut their targets for General Motors.
January platinum rose $US7.90 to $US859.90 an ounce but fell back from an $US891 high, while December palladium declined $US2 to $US222 an ounce after earlier trading higher to $US230.90.
Technically, December gold ran into resistance around the $US770 to $US780 area, Mr Lafferty said.
"We tested it and didn't get through," Mr Lafferty said. "That certainly contributed to anybody long stepping back out of the market."
For a substantial number of new shorts to enter the market, he added, prices probably would have to break down through the area around $US720 to $US715.
Meanwhile, December silver has some resistance around the $US10.65 area, Mr Lafferty said. He put nearby support around $US9.70 to $US9.60.
