RTTNews - Gold prices moved slightly lower on Thursday as the dollar recovered some of its recent losses versus the euro and pound. The drop took gold away from its highest level in nearly two months.

August gold fell to $960.70 per ounce, down $3.50 on the session. Prices had earlier touched as high as $971.10.

In economic news, a Labor Department report showed that initial jobless claims fell to 550,000 from the previous week's revised figure of 588,000. Economists had been expecting jobless claims to edge down to 580,000 from the 584,000 originally reported for the previous week.

The Labor Department's jobs report is due at 8:30 a.m. ET. Non-farm payrolls are expected to fall 328,000 for July, compared to a 467,000-drop in June.

The unemployment rate is expected to rise to 9.6%, compared to 9.5% a month ago. The average workweek is expected to remain at 33 hours and hourly earnings are forecast to rise 0.1% after coming in unchanged in June.

The greenback saw some strength against the euro and pound after the European Central Bank and the Bank of England left interest rates the same. The dollar climbed off of a 7 1/2 month low against the euro and posted sharper gains against the pound, rising away from a 9 1/2-month low.

On Wednesday, gold dropped $964.20 per ounce, down $3.30. Prices had jumped more than $10 in the previous session as the dollar fell to long-term lows.

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