Gold prices held steady Wednesday, amid a slightly firmer dollar and a sell-off in stocks.
The dollar gained ground against the euro and the Japanese yen, which restrained gold prices from moving much higher. But a decline on Wall Street supported some safe-haven buying of the precious metal.
Investors use gold as both a hedge against inflation, which can be triggered by a weak dollar, and as a safety net against economic and market turmoil. Gold prices tend to hold up better than stocks or other risky assets in times of economic uncertainty.
On Wednesday, stocks turned lower on concerns over soaring government debt. The government has been issuing massive amounts of debt to help fund its economic stimulus programs and investors are worried that the surplus will lead to weak demand.
This means the government's borrowing costs could go up and rates on all kinds of loans, including home mortgages, could increase. Treasury yields are used as benchmarks for certain consumer loans.
Gold for August delivery inched up 10 cents to settle at $955.20 an ounce on the New York Mercantile Exchange. Prices traded between $948 and $961.50 throughout the day.
July silver, however, soared 26.5 cents to $14.8650 an ounce. Prices jumped as high as $15.02 earlier in the session - the metal's highest point since August. July copper futures dipped 2 cents to $2.1210 a pound.
Energy prices rose on the Nymex ahead of Thursday's OPEC meeting. Analysts aren't expecting the Organization of Petroleum Exporting Countries to cut production further. OPEC has cut down on the oil it produces by 4.2 million barrels a day since September to offset a huge surplus in supply.
Light, sweet crude for July delivery rose $1 to $63.45 a barrel. Gasoline futures gained 3.32 cents to $1.8550 a gallon, while heating oil futures added 1.73 cents to $1.5883 a gallon.
Grain prices mostly rose on the Chicago Board of Trade.
July wheat futures jumped 13.75 cents to $6.2575 a bushel, while July soybeans rose 1.5 cents to $11.87 a bushel.
Corn for July delivery slipped 1.5 cents to $4.26 a bushel.
