Gold slipped 0.85 percent at $1,231.03 an ounce on Thursday after robust U.S. economic data increased the likelihood that the Federal Reserve will raise U.S. interest rates.
U.S. President Donald Trump plans to announce ambitious tax reform plan in the next few weeks, sending the dollar higher.
The number of Americans filing for unemployment benefits unexpectedly fell last week to near a 43-year low, amid a further tightening of the labor market that could eventually spur faster wage growth.
Inventories at wholesalers surged in December for a second straight month and sales recorded their biggest increase since 2011, signs of confidence in the economy as domestic demand strengthens. The dollar index and U.S. Treasury yields rose after the data.
Chicago Fed President Evans said it is reasonable to expect the Federal Reserve to raise interest rates three times this year.
In a White House meeting with airline executives, Trump promised a "phenomenal" tax plan, but offered no specifics. Trump promised to boost U.S. economy in the presidential campaign by large fiscal measure, including spending expansion and tax cut.
Adding support to prices, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased its bullion holdings for a sixth day on Wednesday.
On technical front, some investors were cashing in their bets on higher prices with gold striking $1,244.67, its highest since Nov. 11, on Wednesday.
The upward momentum remains intact in the medium term with support and reversion level at the 100-day moving average of $1,220.
Spot silver fell by 0.9 percent to $17.62 an ounce, keeping tracking gold. On chart, silver extended losses as it reversed the upturn course after hitting the 200-day moving average, drawing near to the support of $17.5.
In view of the Bollinger path, the white metal had been climbing along the upper end, and may test the middle band after recent correction. It is expected to fall to $17.3. Investors shall wait and see for further signs.

 
Dealing Room, ICBC Beijing Branch
Lv Yan

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