Oil prices rose as government data showed a decline in inventories and a pick-up in gasoline demand. The dollar rose against most of its major rivals after April U.S. trade data came largely in line with expectations.
On the Comex division of the New York Mercantile Exchange, gold for August delivery ended at $954.70 an ounce. It rose to $966.70 earlier but also fell to $947.50. Trading less actively, the June contract also closed unchanged at $954.
"Short-term we still view the market as overbought," said James Moore, an analyst at TheBullionDesk.com. Gold has gained more than 9% this year.
After floor trading closed, gold fell slightly in electronic trading after the Federal Reserve's Beige Book showed five of the Fed's 12 district banks reported that the downward trend in the economy is showing signs of moderating.
Gold for August delivery lost $3.60, or 0.4%, to $950.80 an ounce.
Gold was rising earlier in the session as surging oil prices raised the metal's appeal as a hedge against inflation.
Crude futures rallied nearly 2% Wednesday to above $71 a barrel, after ending above $70 in the previous session for the first time in more than seven months.
U.S. crude inventories fell last week as gasoline demand picked up, the Energy Information Administration reported Wednesday.
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