Gold edged lower on Friday and the dollar traded firm after jobless claims and revised GDP figures released overnight helped ease recession worries but spurred fresh concerns about the outlook for interest rates.
Spot gold dropped 0.2 percent to $1,905.13 per ounce, while U.S. gold futures were down 0.3 percent at $1,912.65.
U.S. GDP was revised up notably to a 2 percent annualized advance in the first quarter and the number of Americans filing new claims for unemployment benefits fell last week by the most in 20 months, pointing to continued strength in the world's largest economy.
Risk sentiment also improved after the results of the U.S. Fed's annual bank stress tests showed large banks are well positioned to weather a severe recession.
After China reported weak manufacturing and non-manufacturing data earlier today, investors now await a U.S. report on personal income and spending for May, which includes readings on inflation said to be preferred by the Federal Reserve.
Elsewhere in Europe, positive inflation and labor market data helped ease concerns around economic recovery and interest-rate hikes.
Eurozone consumer inflation fell to 5.5 percent in June from 6.1 percent in May, according to preliminary data from the European Union's statistics agency Eurostat.
At the same time, the region's unemployment rate held steady at 6.5 percent in May, matching expectations.
