NEW YORK — Gold prices lost more ground Thursday, but managed to pull off their earlier lows as selling on Wall Street intensified. Energy prices rose, while agriculture futures fell.
Gold for April delivery fell $23.60 to settle at $942.60 an ounce on the New York Mercantile Exchange, after earlier falling as low as $932.20. Prices have fallen 5.3 percent this week after hitting an 11-month high of just over $1,000 an ounce on Friday.
Analysts say this week's pullback was to be expected after such a big advance this year. Gold prices have jumped 13 percent in less than two months.
The decline also signals some calming of investors' nerves this week as the administration unveiled more details of its plans to restore the nation's ailing financial system to health. Gold prices had been benefiting largely from safe-haven buying as investors sought shelter from the volatility of the stock market and an uncertain economy.
Gold will continue to take its cues from the stock market, said Matt Zeman, head trader at LaSalle Futures in Chicago.
"We've seen some optimism over what the administration is saying, but the equities have erased the gains today," he said. "Clearly people aren't comfortable."
Banking shares initially pulled much of the market higher as investors welcomed plans from Washington for additional bailout measures that could provide up to $750 billion in support to the struggling banking system. But a proposal
to cut payments to private insurance plans pulled health care stocks, and the broader market, lower late in the day. The Dow Jones industrials finished down 88 points to the 7,182 level. The broader stock indexes both fell more than 1.5 percent.
Analysts expect gold prices to continue an overall upward trend as the broader economy suffers.
Other metals prices were mixed. May silver plunged 93.5 cents to $12.9750 an ounce, while May copper futures rose 4.2 cents to $1.5790 a pound.
The dollar lost ground against other major currencies, including the euro and the British pound.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.97 percent from 2.93 percent late Wednesday.
Oil prices rose on the Nymex for a second straight day, stoked by the belief that OPEC's production cuts could finally be working. The government reported that imports over the last two weeks are more than 10 percent below the prior month's average, a signal that the Organization of Petroleum Exporting Countries appears to have stuck to production cuts of 4.2 million barrels a day.
Many believe another cut of at least 1 million barrels will be announced during the next OPEC meeting on March 15. Investors are hoping that cuts to production will help offset shrinking energy demand.
Light, sweet crude for April delivery jumped 6.4 percent, or $2.72 to settle at $45.22 a barrel.
Gasoline futures rose 13.37 cents to settle at $1.3004 a gallon, while heating oil increased 5.64 cents to settle at $1.2941 a gallon.
Grain prices slumped on the Chicago Board of Trade.
May wheat futures fell 10.75 cents to $5.25 a bushel, while corn for May delivery slipped 1.75 cents to $3.7050 a bushel.
May soybeans shed 11.5 cents to $8.6850 a bushel.
