Gold futures on the COMEX division of the New York Mercantile Exchange fell Thursday as a low service sector jobs report let down traders, who then sought to position ahead of Friday's U.S. Department of Labor unemployment data.

The most active gold contract for June delivery lost 19.2 dollars, or 1.16 percent, to settle at 1,634.8 dollars per ounce.

Gold extended its slide to four straight sessions Thursday, as more negative reports of the U.S. job market sent markets in general downward, said market analysts.

The Institute for Supply Management (ISM) reported that its service sector jobs index dropped to 53.5 percent, down from the 56 percent level in March. According to ISM, U.S. service sector job growth was at its slowest level in six months.

The U.S. equities markets fell sharply following the ISM report, and crude oil settled 2.6 percent lower for the day.

Also adding to negative outside market forces Thursday was a stronger dollar, which makes commodities such as gold more expensive to holders of other currencies. The Intercontinental Exchange (ICE) dollar index, which measures the greenback against six other currencies, traded at 79.24, up from 79.151 in late North American trading on Wednesday.

Traders also seem to be viewing Friday's unemployment release from the Department of Labor negatively and positioning themselves accordingly. In addition to Thursday's ISM report, the ADP private- sector jobs report also recently painted a more negative employment outlook, as according to ADP, April saw a seven-month low of only 119,000 new jobs.

Silver for July delivery fell 63.5 cents, or 2.07 percent, to settle at 30.01 dollars per ounce. Platinum for July delivery lost 31.3 U.S. cents, or two percent, to close at 1,533.1 dollars per ounce.