The precious metal hit a low of $1252.20 an ounce, while currently trading around $1254.78 from the opening at $1257.59.
Federal Reserve minutes for April’s meeting released on Wednesday signaled policymakers could raise interest rates next month if the economy continued to improve.
Markets considered comments hawkish pushing the dollar to a seven-week high of 95.32, according to the dollar index, thereby denting the appeal of the metal and other dollar-denominated commodities.
Strong economic reports released recently from the U.S., in addition to hawkish comments from Fed Presidents, boosted demand on the dollar.
Later in the day, eyes will focus on comments from Fed Vice Chairs William Dudley and Stanley Fischer, as investors aim to get further clues about the timing of the next rate hike.
Gold is very sensitive to interest rate movements, especially by the Fed, since the yellow metal provides no interest to its holders and thereby benefits from the low interest rate environment.
So far, gold has gained 19 percent this year on expectations the Fed would delay its rate hike until the end of this year.
As of 12:30 GMT, the U.S. will release its weekly jobless claims and Philadelphia Fed manufacturing index.
The strong dollar pushed crude oil lower to $47.22 a barrel from the opening at $47.85, while Brent crude tumbled to $47.80.
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