Gold price fell on decreasing demand for safe-haven assets. A stronger U.S. dollar also weighed on gold.

Market participants eyed the U.S. initial jobless claims data. The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending January 09 in the U.S. rose by 7,000 to 284,000 from 277,000 in the previous week. Analysts had expected jobless claims to fall to 275,000.

St. Louis Fed President James Bullard said in a speech on Thursday that the recent drop in oil prices may weigh on the timing when the Fed's 2% inflation target will be reached. But he pointed out that "low oil prices remain a net positive for the U.S. economy".

February futures for gold on the COMEX today decreased to 1082.50 dollars per ounce.