Gold prices slipped Thursday as a stronger dollar plus signs the U.S. economy is growing more than expected and avoiding a double-dip recession.

The Institute for Supply Management's August manufacturing report declined to 50.6 from 50.9, but topped economists' expectations and remained positive. Any number over 50 indicates manufacturing is growing. It was the 25th consecutive month that the U.S. manufacturing sector increased.

The Labor Department said Thursday that U.S. jobless claims fell 12,000 last week to 409,000, though some of the decline stemmed from the fact that initial claims from two weeks ago were revised up to 421,000 from the initially estimated 417,000.

I am breathing a little sigh of relief that the bit of data that we have had over the course of August is weak but not giving the recessionary type of signal, Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh, told Reuters.

The ICE U.S. Dollar Index, which gauges dollar value against a basket of six prominent currencies, rose.

Gold for December delivery, the most actively traded contract on the CME Comex division of the New York Mercantile Exchange, gave up $2.60 to settle at $1,829.10 per ounce.

Silver declined 24 cents to settle at $41.53 per ounce.