Gold prices traded lower on Thursday. Spot gold was at $1,199.50 a troy ounce in morning European trade.

A stronger greenback weighed on gold price. The U.S. dollar traded higher against the most major currencies. The greenback remained supported by yesterday's non-manufacturing purchasing managers' index. The Institute for Supply Management's non-manufacturing purchasing managers' index for the U.S. climbed to 56.9 in February from 56.7 in January, beating expectations for a decline to 56.5.

The U.S. labour market data on Friday might provide the further direction of gold price.