Gold prices retreated 1% on Thursday as the dollar bounced while investors gauged economic cues from the United States for the pace of future interest rate hikes.
Spot gold fell 0.8% to $1,761.70 per ounce by 1322 GMT. U.S. gold futures fell 0.6% to $1,761.60.
"Gold appears to have run out of steam as the recent decline in the U.S. dollar starts to find a bit of a base," said Michael Hewson, chief markets analyst at CMC Markets, adding gold could slide back towards $1,730 before its next leg higher.
But gold could drift higher into year-end if the dollar remains weak overall and yields continue to drift lower, Hewson added.
The dollar index rose, making gold more expensive for other currency holders.
Gold hit a three-month peak of $1,786.35 per ounce on Tuesday on fears of escalation of the Ukraine crisis, but prices have since eased as tensions ebbed.
Eroding some of gold's recent advance, data showed U.S. retail sales increased more than expected in October, renewing expectations that the improved economic data could prompt the Federal Reserve to keep hiking rates.
San Francisco Fed President Mary Daly told CNBC it's reasonable for the Fed to raise its policy rate to a 4.75%-5.25% range by early next year, and that pausing rate hikes is not part of the discussion.
Rising interest rates tend to dull bullion's appeal as it pays no interest.
On the physical front, Swiss gold exports to India fell while it remained strong for China and Turkey in October, Swiss customs data showed on Thursday.
Elsewhere, spot silver dropped 2.4% to $20.96 per ounce, platinum eased 1.8% to $987.96, and palladium shed 3.2% to $2,006.19.
(Reporting by Arundhati Sarkar and Brijesh Patel in Bengaluru; additional reporting by Rahul Paswan; Editing by Emelia Sithole-Matarise)