Gold prices inch higher, energy futures tumble

NEW YORK (AP) - Gold prices inched higher Wednesday in a shortened session as investors looked past discouraging economic reports and made small bets on the metal.

Economic concerns have pressured many commodities prices in the past few months, particularly energy, as investors fear a prolonged recession will lead to further declines in demand.

But gold prices have been able to attract moderate investment demand in recent weeks, boosted by the prospect of rising inflation. Investors often use commodities, especially gold, as a hedge against a weak dollar.

Price movements have been relatively modest though. The contract has traded within a tight range of about $60 since earlier this month.

"Given how far other things have fallen, gold has held up pretty well,'' said Stephen Platt, futures strategist, with Archer Financial Services.

"You are seeing some shifting of interest from some sectors back into gold.''

Gold for February delivery rose $9.90 to settle at $848 an ounce on the New York Mercantile Exchange.

March silver gained 9 cents to $10.35 an ounce, while March copper futures slipped 0.7 cent to $1.2740 a pound.

Many financial markets closed early for Christmas Eve.

On Wall Street, stocks made a modest advance despite government reports showing an increase in U.S. joblessness and a decline in consumer spending.

Investors have largely factored in bad numbers for the fourth quarter, analysts say, so the figures didn't come as a surprise.

The Dow Jones industrial average finished up about 49 points at the 8,468 level.

The dollar was mixed against other major currencies, while the yield on the benchmark 10-year Treasury note rose slightly to 2.19 percent from 2.18 percent late Tuesday.

Energy prices tumbled on the Nymex, still plagued by demand concerns.

Light, sweet crude for February delivery fell $3.63 to settle at $35.35 a barrel.

In other Nymex trading, gasoline futures slipped by 2.5 cents to 83 cents a gallon, while heating oil fell 4.4 cents to $1.2826 a gallon.

Grain prices gained on the Chicago Board of Trade.

March wheat futures rose 7 cents to $5.8225 a bushel, while corn for March delivery rose 3.25 cents to $3.98 a bushel.

March soybeans rose 14 cents to $9.19 a bushel.

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