Gold prices advanced Thursday, as another volatile day on Wall Street sent investors in search of safe-haven investments.
Gold prices have been inching higher in recent weeks as other commodities suffer from concerns that a worsening economy will hamper demand. The contract is up 3.4 percent so far this year, and has closed above $900 in five of the last six sessions.
Investors often turn to gold in times of economic uncertainty as the investment tends to depreciate less than others.
The market has been on edge recently as investors await more details from the government on a proposed stimulus bill. Wall Street has also been anxious ahead of the administration's unveiling next week of a new framework for spending what's left of the $700 billion financial industry bailout which Congress passed last year.
All the while, investors have been bombarded by downbeat economic readings and lackluster corporate earnings. Early Thursday, stocks retreated following disappointing reports on factory orders and unemployment claims. But Wall Street rebounded later in the day as better-than-expected reports from a handful of major retailers pushed stocks higher.
The major indexes gained more than 1 percent, including the Dow Jones industrial average, which rose 106 points to 8,063. The Dow lost as much as 111 points earlier in the session.
Gold for April delivery rose $12 to settle at $914.20 an ounce on the New York Mercantile Exchange.
Other precious metals prices were mixed. March silver jumped 28 cents to $12.75 an ounce, while March copper futures fell 3.1 cents to $1.50 a pound.
The dollar was mixed against major currencies after the European Central Bank held its key interest rate steady and the Bank of England cut its rate to a record low. Both moves were in line with expectations. Lower interest rates often drive investors from a currency as they look for better returns elsewhere.
Energy prices gained on the Nymex, lifted by hopes that the Obama administration's economic stimulus plan would soon clear the Senate.
Light, sweet crude for March delivery rose 85 cents to settle at $41.17 a barrel.
Gasoline futures rose 5.64 cents to settle at $1.2748 a gallon, while heating oil added 4.02 cents to settle at $1.3672 a gallon.
Grain prices rose on the Chicago Board of Trade.
March wheat futures gained 19.5 cents to $5.6175 a bushel, while corn for March delivery rose 13 cents to $3.7125 a bushel.
