Gold extended losses and hit its lowest level in two weeks on Thursday after the dollar strengthened on upbeat US job growth data. Platinum hit a five-week low with selling in Japanese futures further weighing on sentiments, while silver hovered below a six-month high of nearly $15 an ounce hit this week.
Spot gold hit a low of $627.50 an ounce, its lowest since November 22, down from $630.60/632.10 late in New York on Wednesday, when it had fallen nearly two percent.
"The thoughts were that we would be looking to test and break through $650 again and probably up towards $675. Given we're sorts of below that, I would think investors might be a little bit more cautious," said Darren Heathcote of Invested Australia.
"I think we need to be a little bit more cautious now about where gold goes in the next few days. If it remains below $630s, I would think that we'll be targeting $620 again," said Heathcote, referring to a level last seen in mid-November. Gold rallied to a 16-week high at $649.50 an ounce last Friday just below the stubborn $650 resistance level.
Benchmark gold futures on the Tokyo Commodity Exchange fell 31 yen per gram to 2,349 yen to track declines in New York's Comex market. The dollar held gains scored in New York after a private-sector report showed solid US job growth in November, boosting chances of a positive payroll report later in the week.
The dollar was little changed at 115.25 yen, up from a one-month low of 114.43 yen hit on Tuesday. The euro was hardly changed near $1.3290, hovering below a 20-month peak of $1.3370.
In other precious metals, platinum fell to a five-week low of $1,101 an ounce, down from $1,120/1,125 late in New York. Declines in Japanese futures also triggered selling. Silver hit a one-week low of $13.43 an ounce, down from $13.57/13.64 late in New York. Palladium eased to $322/327 an ounce from $326/329.
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