Gold down on stronger dollar, steadying equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell slightly on Thursday as the U.S. dollar strengthened and U.S. equities steadied.

The most active gold contract for June delivery lost 4.30 U.S. dollars, or 0.34 percent, to settle at 1,271.20 dollars per ounce.

Gold came under pressure as the U.S. Dollar Index, a measure of the dollar against a basket of major currencies, rose against most major currencies on Thursday. Gold and the dollar typically move in opposite directions.

The precious metal moved within a narrow range as U.S. equities steadied after the U.S. Dow Jones Industrial Average suffered a 200-point fall on Wednesday as a string of worse-than-expected earnings reports dragged down the market, marking the market's worst day since February 2016.

As of 18:15 GMT, the U.S.-based Dow had risen by 43 points, or 0.24 percent. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

A report released by the U.S. Department of Labor on Thursday showed initial jobless claims increasing by 20,000 to 294,000 claims during the week ending May 7. Analysts noted that this gave support to gold as the jobless claims level is the highest since February.

Traders are also waiting for the release of the U.S. retail sales report and producer price index due out on Friday.

Silver for July delivery fell 21.60 cents, or 1.25 percent, to close at 17.103 dollars per ounce. Platinum for July delivery declined 12.10 dollars, or 1.13 percent, to close at 1,054 dollars per ounce. Endit