By Nathan Becker (Resource Investor)

Gold futures gained $8 to close at $937.50 an ounce on the New York Mercantile Exchange.

Marketwatch reports that the metal revised early losses and continues to draw investment demand.

"The fact that commodities were all up across the board yesterday despite an uninspiring macro backdrop also suggests that fund and investment money is finding its way into the commodity space on perceptions that these investments will do better over the course of the year," said Edward Meir, an analyst at MF Global, in a research note.

"This stands in stark contrast to the almost toxic swatches of alterative investments we see elsewhere, such as non-government debt, CDOs [collateralized debt obligations], and mortgage paper, all of which in varying degrees, are suffering from poor liquidity, price opacity, and anemic investor demand," he said.

The Bloomberg News reports that gold gained after crude oil hit a record high of more than $100 a barrel.

“Inflation is a big factor with gold,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. “Everywhere we look, prices have been rising. Commodity prices still show inflationary pressures.''

“When central banks embark on a prolonged string of rate hikes, that will be a problem for gold,'' said Chip Hanlon, who manages about $1.4 billion as president of Delta Global Advisors Inc. in Huntington Beach, California. “Gold is in good shape because rate hikes are not on the horizon.''