NEW YORK/LONDON: Gold slid on Thursday to a two-week low after a mixed bag of US economic data prompted selling ahead of next week's US Federal Reserve policy meeting.
Spot gold fell as much as 1 percent to $1,309.25 an ounce and was down 0.6 percent at $1,314.47 by 5:05 p.m. EDT (2105 GMT).
US economic reports showed retail sales fell more than expected last month, while the number of Americans filing for unemployment benefits rose less than expected last week.
The reports made investors less confident that Fed policy makers will raise US interest rates when they meet on Sept. 20-21, but many say a rate hike in December is possible.
ETF Securities analyst Martin Arnold called the Fed's reluctance to increase rates supportive for gold, but even a modest hike in December will weaken gold prices in the short term.
US interest rate futures indicate expectations of an increase next week remain low, but the dollar could benefit from anything in the Fed's statement that hints at a hike before the end of the year.
Eli Tesfaye, senior market strategist for RJO Futures in Chicago, said he did not expect gold to fall much further because Indian wedding season and other seasonal factors will support physical demand for gold.
But Commerzbank analysts said in a note that "Gold prices will remain under pressure in the short term, partly because investor expectations are already very high and partly because financial market participants are not feeling any particular fear at present, which is why demand for gold as a 'safe haven' is tending to decline."
The dollar was up 0.1 percent against a basket of six major currencies. A stronger dollar makes gold more expensive for holders of other currencies.
The dollar had risen against the yen in morning trading on expectations the BOJ could ramp up monetary stimulus.
Spot gold looks neutral in a range of $1,319-$1,330 per ounce and an escape could point a direction, Reuters technical analyst Wang Tao said.
With China's markets closed through Sunday for the Mid-Autumn Festival, physical activity in the world's biggest gold consumer is expected to be quiet.
India's gold imports fell for a seventh straight month in August to $1.1 billion as sluggish demand and record high discounts prompted banks and refineries to reduce overseas purchases of bullion.
Among other precious metals, spot silver fell 0.1 percent to $18.94 an ounce. Platinum was down 0.1 percent at $1,031.1 and palladium rose 0.1 percent to $654.5.
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