Gold settled lower on Thursday, having earlier touched its lowest level in nearly four months after data showing that the U.S. economy contracted in the first quarter for the first time in three years.
The U.S. Commerce Department estimated that gross domestic product shrank in the first quarter at a 1.0 percent annual rate. Economists blamed severe winter weather, and the stock market took the news in stride, with all three major U.S. stock indexes moving higher. The U.S. Labor Department reported separately that applications for jobless benefits declined last week.
Analysts said gold prices should find support in an oversold market, but the precious metal will likely face more headwinds from better overall economic conditions.