Gold Prices Pull Back

On the economic data front, the Commerce Department made a downward revision to its estimate of fourth-quarter gross domestic product and a minor upward adjustment to an inflation measure. Other news showed a weaker Midwestern manufacturing sector and more evidence of softness in housing.

Foreign exchange dealers didn't seem to mind the lackluster economic news and bid up the greenback. One dollar was recently buying 118.39 yen, up from 117.98 yen late Tuesday. The euro was fetching $1.3219, down from $1.3236 previously.

"The U.S. may have its problems, but relative to the rest of world it's in much better shape than they are," says Doug Roberts, chief investment strategist at New Jersey-based specialty economics firm, Channel Capital Research. "That leads the dollar to go up."

In the precious metals patch, the Market Vectors Gold Miners(GDX) ETF, which tracks a basket of mining stocks, was ahead by 1.6%.

As for base metals, copper contracts closed 8 cents lower at $2.75 a pound on the Comex, up from the lows. The poor housing news and expected softness in China's economy, both of which have been keeping copper prices at historic highs, will likely dampen sentiment among the bulls.

Shares of Freeport-McMoRan Copper & Gold(FCX) were up 1.9%, rebounding from a big dip Tuesday.