Gold futures hit a 1-month low on Wednesday after the ADP employment report shattered estimates.
U.S. gold futures for April delivery fell $6.70 to settle at $1,209.40.
Spot gold fell 0.63 percent to $1,207.92, after touching its lowest since Feb. 1 at $1,206.05, putting it on track for its fifth straight session in the red.
Investors are awaiting February non-farm payrolls data on Friday as a barometer of the U.S. economy after Federal Reserve Chair Janet Yellen said last week that the central bank was poised to lift rates provided jobs and inflation data held up.
These comments were seen as cementing plans for an increase at the Fed's March 14-15 meeting.