Gold regained some ground on Thursday as traders took advantage of a brief dip below the key psychological $1,900 level that was driven by a volley of robust U.S. economic readings.
Spot gold edged up 0.2% at $1,911.69 per ounce by 11:25 a.m. EDT (1525 GMT). U.S. gold futures shed 0.1% to $1,919.80.
Prices fell under $1,900 for the first time since mid-March after the data as the dollar index firmed 0.3%, making bullion less attractive for overseas buyers. Benchmark 10-year Treasury yields rose. [USD/] [US/]
"We've seen prices move down from $2,000 to $1,900 and that in itself is going to bring about some bargain hunting," said David Meger, director of metals trading at High Ridge Futures.
U.S. jobless claims fell last week by the most in 20 months, pointing to labor market strength that also helped prop up gross domestic product in the first quarter.
"It was a one-two punch taking gold another leg lower… and then the hawkish central banks haven't helped out at all," said Phillip Streible, chief market strategist at Blue Line Futures, in Chicago.
Federal Reserve Chair Jerome Powell said most of the central bank's policymakers expect they would need to raise interest rates at least twice more by year-end with U.S. inflation well above the 2% goal and a labor market that's still very tight.
While gold is considered an inflation hedge, rising rates dull non-yielding bullion's appeal, with current rate expectations putting it on course to end the quarter in negative territory for the first time since September 2022.
Traders awaited May's personal consumption expenditure data, the Fed's favored inflation gauge, on Friday.
Silver fell 0.4% to $22.62 per ounce, while platinum dropped 1.8% to an eight-month low at $894.19.
Palladium dipped 2.1% to $1,223.23, hovering near its lowest since December 2018.
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