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Gold prices were muted on Thursday, with market spotlight on key U.S. economic data that could shed some light on the Federal Reserve's interest rate move.
Spot gold eased 0.2% at $2,333.22 per ounce as of 0836 GMT. Prices have fallen over $100 since hitting a record high of $2,449.89 on May 20.
U.S. gold futures fell 0.8% to $2,323.40.
Traders are taking a stance that is increasingly biased towards a scenario where the Fed keeps rates higher for longer, increasing the opportunity costs of holding the non-yielding precious metal and creating strong price resistance, said Ricardo Evangelista, senior analyst at ActivTrades.
Hawkish rhetoric from U.S. central bank officials have pared back expectations of Fed rate reductions. According to the CME FedWatch Tool, traders see a 48% chance of a rate cut by September.
Revised U.S. GDP figures and weekly jobless claims data are due at 1230 GMT, followed by the Personal Consumption Expenditures (PCE) price index - the Fed's preferred measure of inflation, on Friday.
"Gold prices have benefited from strong safe haven demand, resulting from geopolitical instability and economic uncertainty, as well as large state purchases. These are likely to continue," Evangelista added.
Gold smuggling out of Africa, mainly to the United Arab Emirates, has surged over the last decade, with hundreds of tonnes of gold worth tens of billions of dollars illegally leaving the continent every year, according to a report.
Spot silver fell 1.7% to $31.41 after hitting an over 11-year high last week.
"Strong industrial demand and its inexpensive valuation against gold are spurring investment interest," analysts at ANZ wrote in a note.
"Silver's price rose, as physical demand shows signs of growth."
Platinum rose 0.2% to $1,037.20 and palladium lost 1.9% to $947.00 after falling to a four-week low earlier in the session. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber)