Gold fell sharply during Thursday's trading after spending almost a full week above the $2,500 mark amid potential interest rate cuts and a heated Middle East war.
The increase in US Treasury bond yields following the release of data in the United States (US) further strengthened the USD and weighed on the gold metal.
At exactly 9.50am, the price of gold was at $2,489.32 which is up 0.19% since it opened in early Asian trading on Friday.
Data from the US Bureau of Labor Statistics (BLS) revealed that the number of Americans filing for unemployment benefits rose above previous estimates and readings.
Additionally, other data showed that business activity remained strong even as manufacturing activity contracted for the second month in a row based on the S&P Global report.
Investors digested the minutes of the FOMC meeting published early Thursday morning and a large number of Fed officials supported an immediate policy easing in September.
The minutes show that policy makers have become increasingly convinced that the risk of inflation is skewed downward and the risk of reaching maximum employment has increased.
For now, market participants remain in position to prepare for Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium event. He is expected to lay the groundwork for monetary policy in the second half of 2024.
