Gold Steady Around $1205 after U.S. Data

Gold fell on Thursday as the dollar cut losses after U.S. data showed economic momentum was improving, but the downside was limited by signs the Federal Reserve was unlikely to raise interest rates in June.

The number of Americans filing new claims for unemployment benefits rose slightly more than expected last week, data on Thursday showed. But the four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 5,500 last week to 266,250. That was the lowest level since April 2000.

Spot gold was down 0.3 percent at $1,205 an ounce, while U.S. gold futures for June delivery were down 0.3 percent at $1,205 an ounce.