The price of gold in spot transactions fell 0.5 percent to $2,649.17 per ounce by 0648 GMT.
Gold futures in the United States fell 0.7 percent to $2,670.30.
The dollar held on to its biggest gains in a week on Wednesday, as investors worried about the expanding war in the Middle East.
A stronger dollar would make gold denominated in the US currency more expensive for holders of other currencies.
Gold trading volume was small due to holidays China And India.
Market traders are now awaiting US jobs data and comments from US central bank officials later in the day, in addition to services data from the Institute for Supply Management and Nonfarm Payrolls scheduled for release later this week.
Matt Simpson, chief analyst at City Index, told Reuters that there is a reasonable chance that the Institute for Supply Management and Non-Farm Payrolls reports will surprise positively, which could knock gold down from its current levels with lower bets on the US Central Bank taking strong easing measures.
Traders see a 65 percent chance of the US Federal Reserve cutting interest rates by 25 basis points in November, and a 35 percent chance of a 50 basis point cut.
“Unless tensions escalate,” Simpson said The Middle East More to the point, I suspect gold will remain hovering near its record highs, providing volatile trading conditions while we wait for the data.”
Gold prices, which are considered a safe investment during times of political uncertainty, rose by more than one percent yesterday, Tuesday, after the Iranian attack on Israel.
Israeli Prime Minister Benjamin Netanyahu pledged that Iran would pay the price for its missile attack on Israel, while Tehran said any response would be met with “widespread destruction,” raising fears of a broader war.
Meanwhile, actual demand for gold in major markets fell due to rising prices, with some individual consumers selling to take profits, industry sources and analysts said.
As for other precious metals, silver fell in spot transactions 0.8 percent to $31.17 per ounce, platinum settled at $986.43, and palladium rose 0.5 percent to $999.94.
