The most active gold contract for June delivery fell 28.7 U.S. dollars, or 1.62 percent, to close at 1740.2 dollars per ounce.
The U.S. Dollar Index rose by 0.59 points, or 0.6 percent, to a 99.48 level as of 1750 GMT, dampening gold.
Other factors, however, prevented gold from falling further.
The report released by the U.S. Department of Commerce on Wednesday showed that retail sales for March fell by a record 8.7 percent. Analysts note it is unclear when states will allow stores closed due to the coronavirus to reopen, and there are concerns that even when they reopen, many customers will continue practicing social distancing and avoid entering crowded stores.
The New York Fed on Wednesday reported its Empire State business conditions index falling by a record 57 points to a negative 78.2 reading during the month of April so far. Analysts note that any reading below zero indicates deteriorating conditions and this reading is much worse than expected.
The Dow Jones Industrial Average fell by 490.78 points, or 2.05 percent, to a 23,458.98 level as of 1750 GMT.
Silver for May delivery lost 62.5 cents, or 3.87 percent, to close at 15.505 dollars per ounce. Platinum for July delivery fell 15.1 dollars, or 1.84 percent, to close at 804.6 dollars per ounce.
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