Gold reversed course and edged higher on Thursday as the dollar eased, though the metal traded below an eight-year peak hit in the last session as prospects for economic recovery accelerated after data showed the U.S. economy created record jobs in June.
Spot gold rose 0.3% to $1,775.66 per ounce, easing from the near eight-year high of $1,788.96 hit on Wednesday. U.S. gold futures rose 0.4% to $1,787.50 per ounce.
Nonfarm payrolls rose by 4.8 million jobs in June, the Labor Department's closely watched monthly employment data showed, the most since the government began keeping records in 1939.
"Usually the dollar should strengthen on these very strong numbers, but it hasn't, which means people are still concerned that the economy is not out of the woods yet," said Edward Meir, analyst at ED&F Man Capital Markets.
The dollar slipped to a one-week low against a basket of currencies.
"You can't judge the economy on just one data point for one day ... People think the economy is coming back and that the Fed will not have to stimulate as much," said Michael Matousek, head trader at U.S. Global Investors.
However, the Fed's minutes released on Wednesday point to the fact that it will "keep rates low until 2022, so therefore that provides still a bid for gold," he added.
Federal Reserve policymakers are looking at reviving a Great Recession-era promise to keep interest rates low until certain conditions are met.
Non-yielding bullion has risen 16.8% so far this year, prompted by stimulus measures and interest rate cuts by central banks.
In other metals, palladium fell 0.3% to $1,898.84 per ounce, platinum fell 0.9%, to $808.37 per ounce, while silver rose 0.5% to $18.02 per ounce.