By Claudia Assis and Kate Gibson , MarketWatch SAN FRANCISCO (MarketWatch) -- Gold prices held steady Wednesday after the prior session's modest gains, with ongoing concern about Spain's financial health supporting the precious metal. Gold for August delivery, the most active futures contract, was up 60 cents to $1,234,90 an ounce on the Comex division of the New York Mercantile Exchange. It rose as high as $1,239.50 earlier in the session, and finished at $1,234.40 an ounce on Tuesday, a gain of $9.90, or 0.8%. Gold deepened its losses after an upbeat output report, but buyers were quick to buy on the dips and prices reversed course to post moderate gains. The Federal Reserve reported Wednesday a 1.2% rise in industrial production in May, the largest increase since August. There's prevalent buying interest on any dips in price, and increased investor appetite "in the wake of jitters over peripheral euro-area debt amid persistent speculation over Spain's banking system," analysts at Action Economics said. The dollar index (DXY 86.04, +0.06, +0.06%) , which contrasts the U.S. currency against six others, was up 0.2% at 86.19. The euro (CUR_EURUSD 1.2319, -0.0002, -0.0162%) , which on Tuesday rose to a two-week high, lately stood at $1.229. Traders earlier had to contend with macroeconomic reports in the U.S showing a 10% drop in house starts and falling wholesale prices. Other metals fell on Wednesday, with copper leading the way. July copper lost 2 cents, or 0.8%, to $2.98 a pound. Silver for July delivery was down 5 cents, or 0.3%, to $18.52 an ounce.

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