The metal's 0.5 percent decline snapped a two-day winning streak, marking its biggest daily decline in a week. Bullion dropped after the ECB gave no clear hints of further monetary easing and the BOE decided not to restart its gilt purchases plan.

The gold market now turns its focus to Friday's all-important US nonfarm payrolls report for February. Signs of continuing recovery in the job market could prompt the Federal Reserve to halt its economic stimulus earlier than thought.

"Gold is under pressure as the overall numbers have started to pick up in the economy. If we see job growth on Friday, the metal may continue to weaken," said Frank McGhee, head precious metals trader at Integrated Brokerage Services LLC.

Spot gold was down 0.5 percent at $1,575.44 an ounce by 2:34 p.m. EST (1934 GMT).

US gold futures for April delivery settled up 20 cents at $1,575.10, with trading volume about 10 percent below average, preliminary Reuters data showed.

Gold's safe-haven status was also dented after the US House of Representatives passed a bill to avert a possible government shutdown for now.

Strong US data earlier this week, including a better-than-expected private-sector jobs report, has brightened the mood in the markets and lifted the Dow Jones industrial average to record highs for a third consecutive session on Thursday.

"Every time we've seen a strong number in recent weeks, it's almost as if someone's been pressing the sell button (on gold) automatically," said Ole Hansen, senior manager at Saxo Bank.

US job growth likely was moderate in February as higher taxes and fears of deep government spending cuts made employers cautious, suggesting there was still not enough momentum in the economy for the Fed to scale back its stimulus.

Silver dropped 0.9 percent to $28.76 an ounce.