Gold edged lower on Thursday, pressured by a slightly firmer dollar and as some investors sold to redeem profits after bullion's recent challenge to the upside.
Spot gold inched down 0.24 percent to $1,251.80 per ounce, retreating from an overnight peak of $1,258.96.
U.S. gold futures for June delivery were up $4.80 to settle at $1,253.30, after climbing as much as 1 percent to $1,260.80 earlier in the day.
"The slight uptick in the dollar and some profit taking after the move late yesterday is probably bringing in that bit of weakness," said Jonathan Butler, commodities analyst at Mitsubishi in London.
The dollar index extended gains after data showed new applications last week for U.S. unemployment benefits recorded their biggest drop in nearly two years.
Those claims, however, will have no bearing on March U.S.
Those claims, however, will have no bearing on March U.S. non-farm payrolls data on Friday, which analysts say could be key for short-term direction of the gold market.
According to a Reuters survey of economists, non-farm payrolls likely increased by 180,000 jobs last month after rising 235,000 in February.