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Gold prices showed a significant move to the downside during trading on Thursday, more than offsetting the increase seen in the previous session.
After climbing $7.80 or 0.4 percent to $1,784.30 an ounce on Wednesday, gold for February delivery slumped $12.60 or 1.2 percent to $1,762.70 an ounce.
The pullback by the price of gold came amid reduced appeal for the safe-haven asset as stocks on Wall Street rebounded strongly following yesterday's sharp pullback.
An uptick in the value of the U.S. dollar may also have weighed on the precious metal, with the U.S. dollar index inching up 0.1 percent to 96.11.
In U.S. economic news, the Labor Department released a report showing a modest rebound by initial jobless claims in the week ended November 27th.
The report said initial jobless claims rose to 222,000, an increase of 28,000 from the previous week's revised level of 194,000.
Economists had expected jobless claims to climb to 240,000 from the 199,000 originally reported for the previous week.
