Gold settled under $1,325 on Thursday, as the dollar held firm after weekly jobless claims data showed an improving U.S. labor market, which could support a wind-down of the Federal Reserve's bond buying later this year.
U.S. jobless claims fell to a near six-year low last week, official data showed on Thursday. The reading gives a clearer view of the labor market's health after an update in government computer systems in California and Nevada threw claims data into disarray earlier this month.
Spot gold, steady above $1,330 before the release of the U.S. data, fell 0.7 percent to $1,323 an ounce, after gaining nearly 1 percent in the previous session. U.S. gold futures for December delivery closed $12.10 lower at $1,324.10 an ounce.