Gold fell 1 percent on Thursday as the dollar jumped versus the euro after the European Central Bank (ECB) cut inflation forecasts, while a U.S. jobs report that could provide clues on the timing of a Federal Reserve rate rise remained in focus.
The ECB left interest rates unchanged at record lows as expected, but lowered its forecasts for inflation and economic growth, citing a slowdown in emerging markets and weaker oil prices.
As a traditional hedge against inflation, gold suffered from the downward revision.
Spot gold fell as much as 1.1 percent to a session low of $1,121.35 an ounce and was last down 0.8 percent at $1,124.35. U.S. gold for December delivery settled down 0.8 percent at $1,124.50 an ounce.