The dollar hovered around a two-week low, weighed down by the latest insistence from Federal Reserve chairman Jerome Powell that rate increases are still some way off
"Gold has support nearby at $1,720, and if the US dollar strengthens in Asia and Europe, it could test that level, prompting some stop-loss selling," said OANDA senior market analyst Jeffrey Halley.
Job vacancies, retail sales, home building and house prices have all indicated a brisk recovery is underway, seemingly lessening the need for more monetary stimulus.