Gold prices moved higher Thursday as volatility in the stock market pushed some investors toward the traditionally "safe-haven" investment.
But other commodities, including energy and agriculture futures, tumbled as investors were hit with a barrage of dour economic news. Investors have been fleeing both stocks and commodities on fears of a severe and protracted economic slump.
As a result, commodities have been mirroring the movement of the stock market. On Thursday, the Dow Jones industrial average fell 445 points, or 5.6 percent, while the Standard & Poor's 500 index dropped 6.7 percent to the 752 level, below the closing low logged on Oct. 9, 2002.
A number of factors weighed on the market, including dashed hopes for a bailout of the U.S. auto industry and fresh concerns over the stability of the financial sector. Meanwhile, the Labor Department reported that new claims for unemployment benefits jumped last week to a 16-year high.
Gold for December delivery rose $12.70 to settle at $748.70 an ounce on the New York Mercantile Exchange.
Carlos Sanchez, an analyst at CPM Group in New York, attributed the increase to "safe-haven buying."
"The sentiment is still there that actually gold is a solid investment, and has more of a price appreciation potential than other investments," he said.
Other precious metals prices fell. December silver shed 28.50 cents to $9.025 an ounce, while March copper futures fell 2.95 cents to $1.58 a pound, after hitting a new 52-week low of $1.5505 a pound earlier in the session.
The dollar was mixed against other major currencies.
Oil prices on Thursday hit levels not seen in more than three years, bombarded once again by economic concerns.
Light, sweet crude for December delivery fell 7 percent, or $4, to settle at $49.62 in Nymex trading.
Oil prices have fallen 66 percent since reaching a record $147.27 a barrel in mid-July.
In other Nymex trading, gasoline futures tumbled 10 cents to settle at $1.0070 a gallon. Heating oil lost 8.38 cents to settle at $1.6759 a gallon.
Meanwhile, grain prices lost ground on the Chicago Board of Trade.
March wheat futures fell 15.5 cents to $5.31 a bushel, while corn for March delivery fell 15.25 cents to $3.80 a bushel.
January soybeans dropped 41 cents to $8.56 a bushel.
