Gold fell to a three-week low on Thursday, weighed down by a stronger dollar as investors began to assess the potential for another U.S. rate hike later in the year, supported by data showing a strong U.S. jobs market. The losses in gold were limited, however, with bullion underpinned by myriad global uncertainties, including a report that U.S. President Donald Trump was under investigation. The U.S. Federal Reserve raised interest rates by a notch as expected on Wednesday and indicated further tightening before the end of the year.
Spot gold fell 0.5 percent to $1,254.05 an ounce, after touching $1,251.18, the weakest since May 24. U.S. gold futures for August delivery settled down 1.7 percent at $1,254.60.
The number of Americans filing for unemployment benefits fell more than expected last week, pointing to shrinking labor market slack that could allow the Federal Reserve to raise interest rates again this year despite moderate inflation growth. The dollar index rallied after the jobs data.
On technical front, gold is losing steam in the medium term after breaching below the 10-day, 20-day and 30-day moving average successively. But in the near term, bullion is expected to steady, consolidating along the 30-day moving average.
Silver shed 0.8 percent to $16.74 per ounce after slipping to $16.64, the lowest since May 19. It hit $16.89 during the session underpinned by a report that U.S. President Donald Trump was under investigation. The white metal is expected to steady at current level if no more bearish news was heard in the near term.

 
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