Gold turned into a refuge from Wall Street Thursday, rising moderately as investors pulled money out of stocks amid discouraging earnings reports and downbeat economic data. Energy and agriculture futures were mostly lower.
Disappointing results at Microsoft Corp. raised investors' concerns about the economy.
The software maker reported an 11 percent drop in its fiscal second-quarter profit. The company also said it would slash 5,000 jobs over the next year and a half, the first mass layoffs in its history.
The news came on top of more negative economic readings, including an increase in the number of weekly jobless benefit claims and a sharp decline in home construction activity.
Signs of economic deterioration bode poorly for most commodities as economic weakness leads to falling demand. But gold is somewhat in a league of its own, often benefiting during times of economic crisis because investors see it as a more reliable investment _ one that doesn't depreciate in value as sharply as others.
Jon Nadler, an analyst at Kitco Bullion Dealers Montreal, said safe-haven demand might be able to keep gold prices above the $800 to $845 area for some time.
A decline in the dollar against the euro and the British pound also helped buoy gold, which is often used as a hedge against a weak greenback.
Gold for February delivery added $8.70 to settle at $858.80 an ounce on the New York Mercantile Exchange.
Other precious metals prices were mixed. March silver rose 4 cents to $11.3650 an ounce, while March copper futures slipped 3.75 cents to $1.3960 a pound.
The Dow finished down 105 points at 8,122. Stocks have swung wildly this week as investors wrestle with concerns about the economy; the Dow posted a 4 percent drop on Tuesday, only to rebound with a 3.5 percent jump on Wednesday.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.60 percent from 2.55 percent late Wednesday.
Energy prices were mostly lower on the Nymex after the government reported enormous inventories of oil and gasoline at U.S. storage facilities, a sign of how badly the deteriorating economy has cut into energy demand.
Oil prices tumbled 7 percent before a late day rally, with light, sweet crude for March delivery settling up 12 cents at $43.67 a barrel.
In other Nymex trading, gasoline futures fell 8 cents a gallon to settle at $1.1738, and heating oil fell 3.74 cents to settle at $1.386 per gallon.
Grain prices fell on the Chicago Board of Trade.
March wheat futures shed 5 cents to $5.6675 a bushel, while corn for March delivery lost 2.75 cents to $3.8750 a bushel.
March soybeans fell 8.5 cents to $10.12 a bushel.
