By Kate Gibson , MarketWatch NEW YORK (MarketWatch) -- Gold prices held virtually steady Wednesday after the prior session's gains, with ongoing concern about Spain's financial health supporting the precious metal. Gold for August delivery, the most active futures contract, was lately up $1.40 at $1,235.8 an ounce on the Comex division of the New York Mercantile Exchange. It rose as high as $1,238.90 earlier in the session, and finished at $1,234.40 an ounce on Tuesday, a gain of $9.90, or 0.8%. Noting prevalent buying interest on any dips in price, analysts at Action Economics noted increased investor appetite "in the wake of jitters over peripheral euro-area debt amid persistent speculation over Spain's banking system." The dollar index (DXY 86.38, +0.40, +0.46%) , which contrasts the U.S. currency against six others, was up 0.3% at 86.274. The euro (CUR_EURUSD 1.2258, -0.0063, -0.5113%) , which on Tuesday rose to a two-week high, lately stood at $1.2270. At 8:30 a.m. Eastern, traders will get economic reports on U.S. housing starts, inflation and industrial production. At 9:15 a.m. Eastern the Federal Reserve will report on production at U.S. factories, mines and utilities.

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