Gold price dropped more than 1% on a stronger U.S. dollar. The greenback rose against other currencies after the release of the ADP Employment Report. Private sector in the U.S. added 217,000 jobs in November, according the ADP report on Wednesday. October's figure was revised up to 196,000 jobs from a previous reading of 182,000 jobs. Analysts expected the private sector to add 190,000 jobs.

Official labour market data will be released on Friday. Analysts expect that U.S. unemployment rate is expected to remain unchanged at 5.1% in November. The U.S. economy is expected to add 200,000 jobs in November, after adding 271,000 jobs in October.

December futures for gold on the COMEX currently traded at 1055.40 dollars per ounce.