Gold settled roughly 1 percent lower on Thursday as encouraging U.S. retail sales and job data fueled speculation on the possible scaled-back U.S. Federal Reserve monetary stimulus, weighing bullion's inflation-hedge appeal.
Platinum group metals also tumbled on easing supply fears after South Africa's top mining union delayed plans to strike.
Gold stayed lower after U.S. government said retail sales rose more than expected in May and first-time applications for jobless benefits fell last week, showing signs of resilience in the economy despite belt-tightening in Washington.
The data was seen as adding to arguments for the Fed to end its $85-billion monthly bond purchases. Analysts said that a gradual end of Fed stimulus has already driven up U.S. short-term interest rates, reflected in the Treasury bond yields, and that keeps gold from rising further.
"It's the old argument that when you foresee rate rises then the opportunity cost of holding gold will be higher and less attractive for investors," Danske Bank annalist Christin Tuxen.