Gold prices inched lower Friday, but finished the week up 3 percent, as lawmakers moved closer to approving a nearly $800 billion economic stimulus package.
Oil prices rallied, while agricultural futures fell.
Analysts attributed gold's decline Friday to profit-taking ahead of the long Presidents Day weekend. Prices were up nearly 4 percent this week going into Friday's session.
"Investors are viewing the pullback as anything but unlucky, and are likely welcoming the pause as a sign that the march to $1,000 is hopefully more orderly than has been the case on occasion," wrote Jon Nadler, senior analyst at Kitco Bullion Dealers Montreal, in a research note.
On Friday, the House passed President Barack Obama's $787 billion plan to revive the economy. The bill now goes to the Senate where a late Friday vote was possible in order to meet a deadline of passing the plan ahead of a recess next week.
Despite the plan's imminent passage, investors are still on edge, concerned that the government's efforts to stimulate the economy might not be enough to pull the nation out of recession.
In the meantime, fears about the stability of the financial sector remain high. The market is waiting for more details on how the administration will implement its overhaul of the $700 billion financial bailout package passed last fall. The White House said Friday that Obama will outline a plan next Wednesday to stem home foreclosures.
With so much economic uncertainty, trading on Wall Street has been particularly volatile. On Friday, stocks traded mixed in wobbly trading as investors awaited more specifics from the government.
Gold prices tend to benefit in tough economic times, as investors flock to the metal for safety. Prices have risen steadily this year, and analysts generally expect the trend to continue, especially as the government prepares to pump billions of dollars into the system. This bodes well for gold, which is used as a hedge against inflation and a weak dollar.
Gold for April delivery dipped $7 to settle at $942.20 an ounce on the New York Mercantile Exchange.
March silver rose 11.5 cents to $13.6250 an ounce, while March copper futures added 0.4 cent to $1.5385 a pound.
The Dow Jones industrials closed down 82 points to 7,850. Broader stock indexes also finished lower.
The dollar fell against most other currencies, including the euro and the British pound.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.90 percent from 2.79 percent late Thursday.
Oil prices soared 10 percent on the Nymex, breaking out of a weeklong slump.
Light, sweet crude for March delivery rose $3.53 to settle at $37.51 a barrel, after earlier rising as high as $38.25.
In other Nymex trading, gasoline futures fell 6.2 cents, or nearly 5 percent, to $1.1963 a gallon, and heating oil fell 1.91 cents to $1.30 a gallon.
Grain prices declined on the Chicago Board of Trade.
May wheat futures fell 3.25 cents to $5.4825 a bushel, while corn for March delivery dipped 3 cents to $3.6325 a bushel.
May soybeans dropped 13.75 cents to $9.5775 a bushel.
