Gold closed lower as strong US economic data contributed to a strengthening dollar, which added pressure to the yellow-metal.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell $9.70 to close at $1,175.20 per ounce. Trade ranged from $1,172.40 to $1,186.60.
In the US data, weekly unemployment claims at 276,000 were below forecasts of 280,000. Revised non-farm productivity quarter-over-quarter in March declined 3.1 percent, below the projected 2.8-percent decline.
March revised unit labor costs quarter-over-quarter rose 6.7 percent, above the forecast 5.8 percent, while Challenger job cuts in May at 22.5 percent were down on the previous month’s 52.8 percent.
The dollar was 0.3 percent stronger at $1.1246 against the dollar.
“We will need to see a real breakdown below $1,176 to see the bears take any stronghold on direction,” G. Miguel Perez-Santalla, an analyst Heraeus Metal Management, said. “It seems the market wants to keep trying lower but buyers especially in the New York market view every dip as another opportunity to buy in at discount levels.”
“The US dollar has not moved significantly the last couple of days and most likely is waiting on tomorrow’s unemployment report to give direction,” Perez-Santalla added.
On Wednesday, European Central Bank president Mario Draghi said the bank would be willing to do more to help lift the economy if needed. He also raised the bank’s eurozone inflation forecast for 2015 to 0.3 percent from 0 percent in its March predictions.
Prime Minister Alexis Tsipras reportedly rejected proposals put together by its lenders, arguing that any deal to unlock crucial bailout funds must be based on his own side’s conditions. But the two sides remain “very close” to agreeing a deal, Tsipras said, after creditors supposedly proposed lower primary surplus goals.
“All four precious metals down on the day,” Commerzbank said. “An uncertain situation regarding another bailout round for Greece did not materialize in higher prices for precious metals so far.”
Still, many participants may be waiting on the sidelines ahead of Friday’s crucial US jobs report – data from the country has increased importance while observers seek signs of a rebound in the second quarter.
Labour market data in particular was cited by the Federal Reserve as one of the key factors on its decision when to raise interest rates from near zero, where they have been since 2008.
Friday’s report is forecast to show that the US created 226,000 new jobs in May, up from 223,000 previously, while the unemployment rate is predicted to remain at 5.4 percent.
In other data today, the eurozone retail PMI came in at 51.4, the first time the number has not been below 50 since July 2014.
Meanwhile in equities, the Dow Jones industrial average and S&P were down 0.9 percent and 0.8 percent respectively.
As for the other precious metals, Comex silver for July delivery was down 3.15 cents at $16.165 per ounce. Trade has ranged from $16.080 to $16.500.
Platinum futures for July delivery on the Nymex were down $3.80 at $1,100.30 per ounce, while the most-actively traded palladium contract was at $755.45, down $2.55.
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