Precious metals lost the ground gained in last day’s session, as worse-than-expected U.S. nonfarm payroll losses decreased gold's appeal as a hedge against inflation and bolstered the dollar on Thursday. The lack in physical demand also weighed on bullions.

Gold futures on MCX declined by 0.45 percent, compared with the fall of 1.1 percent on COMEX. Silver futures also declined, losing 1.26 and 1.20 percent on MCX and COMEX respectively.

IN FOCUS:

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings were at 1,120.55 tonnes as of July 2, unchanged from the previous business day. Holdings in the trust, which issues securities backed by physical stocks of gold, have declined in the past few weeks.

U.S. employers cut 467,000 jobs in June, far more than expected, while the unemployment rate rose to 9.5 percent, a government report showed on Thursday.

 Indian imports were likely down by more than half in June from the same month a year ago, while imports into Turkey rose to 4.336 tonnes in June from zero the previous month, according to data from the Istanbul Gold Exchange.

 New York energy and commodity markets will be closed Friday in observance of the U.S. Independence Day on July 4. The markets will reopen as usual on Monday.

FUNDAMENTAL OUTLOOK:

Precious Metals witnessed correction yesterday on the back of dollar strengthening after U.S. jobs reports led to some risk aversion and triggered sell off in most of the commodities. Gold and silver are expected to trade sideways to up on bargain hunting.