Gold futures on the COMEX division of the New York Mercantile Exchange closed lower on Thursday after gains in five consecutive sessions.
The most active gold contract for February delivery fell 12 dollars, or 0.90 percent, to close at 1327.20 dollars per ounce, retreating from new highs since last September.
The gold had posted gains for five days in a row as the U.S. dollar failed to see much of a bounce back from recent lows.
The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, fell 0.44 percent to 90.58 as of 1809 GMT, when President Donald Trump tried to negotiate a broader budget deal to avoid a possible U.S. government shutdown.
Meanwhile, the U.S. Treasury yields have increased significantly, with 10-year bond rate hitting 2.57 percent on Wednesday, which added pressure onto the precious metal.
Some analysts also underlined the inevitable correction of gold prices, given the fact that gold futures had gained some 100 U.S. dollars since the Federal Reserve lifted a key U.S. interest rate last December.
They argued that such a sharp rise within one month would expect a correction sooner or later.
As for other precious metals, silver for March delivery fell 21.2 cents, or 1.23 percent, to settle at 16.954 dollars per ounce. Platinum for April went down 3.7 dollars, or 0.37 percent, to close at 1,007.20 dollars per ounce.
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