Gold prices fell on Thursday, pressured by a firm dollar as investors awaited U.S. inflation data to gauge the Federal Reserve's monetary policy stance as well as a European Central Bank meeting.
Spot gold fell 0.4% to $1,880.17 per ounce by 0949 GMT, having earlier hit its lowest level since June 4 at $1,875.89.
U.S. gold futures fell 0.7% to $1,883.30 per ounce.
"Further signs of inflationary pressures could sweeten appetite for gold ... However, upside gains may be capped by an appreciating dollar if inflation fears send U.S. Treasury yields climbing," said Lukman Otunuga, senior research analyst at FXTM.
Higher yields threaten gold's appeal as an inflation hedge as they raise the opportunity cost of holding non interest-bearing bullion.
The much anticipated U.S. consumer price index data is due , after last month's report showed consumer prices increased by the most in nearly 12 years in April.
Economists polled by Reuters estimate CPI rose 0.4% in May.
"There is a sense in the market that the Fed got the market under control saying that the inflation is transitory, so that's the whole focus right now, whether that can be achieved or not," said Ole Hansen, head of commodity strategy at Saxo Bank.
U.S. weekly jobless claims data, also due on Thursday, will give further cues on labour market recovery in the world's biggest economy.
The dollar index ticked up, making gold less appealing for those holding other currencies.
The ECB policy decision is due at 1145 GMT. The central bank is all but certain to maintain a generous flow of stimulus when policymakers meet.
Elsewhere, silver fell 0.3% to $27.67 per ounce, palladium dropped 0.4% to $2,767.06, while platinum slipped 0.9%, to $1,139.76.
(Reporting by Eileen Soreng in Bengaluru; Editing by Alexander Smith) ((firstname.lastname@example.org; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: email@example.com))