Spot gold fell 1.3% to $1,956.79 an ounce at 1740 GMT, after hitting its lowest level since April 3 at $1,951.73.
US gold futures fell 1.3% to $1,959.80 on settlement.
The number of new jobless claims in the United States was lower than expected last week and this coincided with a slowdown in the decline in the Reserve Bank of Philadelphia’s activity indicator.
Gold came under pressure as US equities rose and dollar and 10-year Treasury yields hit their highest levels in several weeks, helped by economic data.
The market now expects around 20% interest rates to be raised again in June, compared to 20% expecting them to be lowered about a month ago.
The yellow metal, which pays nothing, suffers when higher interest rates support the returns of competing assets such as bonds.
As for other precious metals, the spot price of silver fell 1.1% to $23.47 an ounce, platinum 1.9% to $1,048.27 and palladium 1.9%. .9% to $1458.87.
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