On Wednesday, the gold prices went down towards 5.5-year lows, as market participants are preparing for the release of key US data later in the session amid lingering expectations of a rate hike in the US in September.
During European morning trade, on the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell $ 3.80, or 0.35%, to get traded at $ 1086.90 per troy ounce after a session low of $ 1083.90.
A day earlier, gold rose $ 1.30, or 0.12%, to get closed at $ 1090.70. On July 24, futures tumbled to 5.5-year low of $ 1072.30. In July, gold prices lost $ 79.50, or 6.72%, showing the largest monthly decline since June 2013.
The US should publish an ADP report on employment for July, whereas the ISM reports about service sector activity. Market participants are also being prepared for publication of US government's report on non-farm payrolls which will be on Friday.
According to the consensus forecast, the report will show an increase in the number of jobs for last month at 215 000. The monthly growth at above 200 000 is considered by economists as a high rate of employment growth.
In recent weeks, gold has come under strong selling pressure amid speculations that in the coming months, the Federal Reserve will raise interest rates for the first time in nine years.
Expectations of interest on loans increase had a negative impact on the precious metal because it cannot compete with profitable assets in a period of growing rate.
The president of the Federal Reserve Bank of Atlanta, Dennis Lockhart, said in an interview with Wall Street Journal, that the Fed is "close" to increase the rate.
The USD index, which tracks the US currency against a basket of six major rivals, is traded at 98.20, the peak of April 23.
A strong US dollar, as a rule, is putting pressure on gold, as it reduces the attractiveness of the metal as an alternative asset, and increases the prices of dollar-denominated commodities for holders of other currencies.
Also on the Comex, silver futures for September delivery fell 5.2 cents, or 0.36%, to get traded at $ 14.50 per troy ounce.
During morning trade in New York, copper for September delivery fell 1.5 cents, or 0.63%, to $ 2347 per pound.
On Monday, copper fell to $ 2321, the lowest level since June 2009, after the release of disappointing data on Chinese manufacturing activity.
China is the world's largest consumer of copper, it accounted for almost 40% of world consumption last year.