On Thursday, New York Fed President William Dudley said the last two months of job growth "helped allay concerns that arose earlier this year that job growth was beginning to stall."
He did however not comment on his remarks earlier this week that the Fed could possibly raise rates in September.
Gold is sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.46 percent to 957.78 tonnes on Wednesday.
The Chicago Mercantile Exchange (CME) on Wednesday lowered COMEX 100 Gold Futures (GC) maintenance margins for speculators by 10 percent to $5,400 per contract from $6,000 for August and September 2016.
Silver was up 0.33 percent at $19.73 an ounce, after touching a more than three-week low on Wednesday.
Platinum rose 1.58 percent to $1,130.60, after hitting a three-week low of $1,099.74 in the previous session, while palladium was up 2.89 percent at $712.