Gold reached its lowest level in more than a week, while silver also faced concern about industrial demand and tighter financial conditions. Initial jobless claims rose to 200,000 in the week ended Nov. 7, from a revised 191,000 the previous week, above expectations of about 195,000. The four-week average held at 195,250, a sign that layoffs remained limited despite elevated borrowing costs.

The claims data followed October inflation figures showing consumer prices rose 0.4% and core prices 0.3%. An October employment report also showed payrolls up 165,000, unemployment at 4.1% and average hourly earnings 0.4% higher on the month. Together, the releases pointed to resilient employment and inflation that has not eased enough to relieve pressure on the Fed. Futures pricing put the probability of a 25-basis-point increase at the Dec. 8-9 meeting at roughly 88% to 91%, with a smaller chance of a 50-basis-point move.

The 10-year Treasury yield was near 5.00% as cash markets reopened after Wednesday's Veterans Day closure; the two-year yield approached 4.76%. The dollar index held around 102.85 after reaching a 19-month high, making gold more expensive for buyers using other currencies. Friday's October producer price index, due at 8:30 a.m. EST, is the next major inflation release. Softer figures could ease pressure on yields and bullion; an upside surprise could strengthen expectations of further tightening.

Geopolitical risks offered a counterweight to the pressure on gold. Shipping through the Strait of Hormuz remained severely disrupted amid attacks on tankers and stalled U.S.-Iran negotiations: ship-tracking data recorded five commodity vessels crossing on a recent Saturday and none the following Sunday, compared with 31 during the prior weekend. Crude prices fluctuated after rebounding Wednesday from two-month lows, with diplomacy and supply concerns pulling markets in different directions. Oil remained below its October highs, though shipping restrictions kept some geopolitical risk premium in place.

Global equities were mixed in Thursday trading as investors weighed rate expectations and volatility in artificial-intelligence shares. In Wednesday's U.S. session, the Dow rose 0.49%, the S&P 500 gained 1.31% and the Nasdaq Composite added 1.60%. In Europe, the Stoxx 600 advanced 0.72% and Germany's DAX rose 1.20%.

For gold, the next resistance levels cited were $3,944.00 and $3,948.98, followed by upside targets at $3,992.00 and $4,022.00. Support was at $3,919.18 and $3,896.00, with a break lower exposing $3,870.00. Silver resistance stood at $51.140 and $52.390, with $53.430 as a further target; support was at $50.579 and $50.120.