The price of gold dropped again on Thursday as encouraging employment data led traders away from the safety investment of the precious metal. Traders considered a slew of corporate and economic news on the day.

Gold for June delivery closed at $891.20, down $9.30 for the session. Prices dropped for the third time in four sessions.

The dollar rebounded against other majors on Thursday in New York, moving away from two-week lows against the euro and the pound. Meanwhile, the buck extended its comeback versus the yen. Gold tends to trade in the opposite direction as the greenback because of the precious metal's hedge appeal.

On the economic front, a Commerce Department report showed that personal income fell 0.3 percent in March following a 0.2 percent decrease in February. Economists had been expecting a slightly more modest decrease in income of about 0.2 percent.

The Commerce Department added that personal spending fell 0.2 percent in March following an upwardly revised 0.4 percent increase in the previous month. Spending had been expected to edge down 0.1 percent compared to the 0.2 percent increase originally reported for February.

The U.S. Labor Department revealed that initial jobless claims came in at 631,000 for the week ended April 25, down 14,000 from last week's revised total of 645,000.

The report released by the Institute for Supply Management - Chicago showed that the index of activity in the manufacturing sector rose to 40.1 in April from 31.4 in March, although a reading below 50 indicates a contraction in the sector. Economists had expected a more modest increase to a reading of 35.0.

Traders also had their first chance to react to the Federal Reserve's announcement Tuesday afternoon that it voted unanimously to keep the target range between 0 and 0.25 percent. The move by the Fed was widely expected. The Federal Open Market Committee noted that the economy has continued to contract, though the pace of contraction appears to be somewhat slower.

Gold added $6.90 on Wednesday to top the $900 an ounce mark. Traders mulled over a weaker-than-expected gross domestic product report.

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