Gold declined towards a seven-week low in New York as improving US data added to the case for reduced stimulus.
Bullion futures reached US$1,277.40 an ounce on April 1, the lowest since Feb 11. A private report on Wednesday showed US companies increased hiring last month. The Bloomberg Dollar Spot Index that tracks the US currency versus 10 major counterparts reached the highest since March 25 on Thursday before government data on Friday that may show stronger jobs growth.
Federal Reserve Chair Janet Yellen said last month the central bank may end bond buying this fall and increase borrowing costs six months after that, before this week saying that considerable slack in labor markets showed that accommodative policies will be needed for some time.
''As far as gold is concerned, in the short term, much will depend on the US non-farm payrolls report this Friday,'' Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote in a report on Thursday. ''Gold safe-haven buying continues to lose its appeal. A stronger dollar will likely continue to impede any price rebound from here.''
Gold for June delivery fell 0.5% to $1,284.40 by 7.42am on the Comex in New York. Futures volume was 11% below the average for the past 100 days for this time of day, data compiled by Bloomberg showed. Bullion for immediate delivery declined 0.4% to $1,284.17 in London, according to Bloomberg generic pricing.