Gold futures on the COMEX division of the New York Mercantile Exchange edged up Thursday, as a weaker U.S. dollar and improved sentiments regarding issues in the eurozone boosted the precious metal.

The most active gold contract for June delivery gained 1.3 dollars, or 0.08 percent, to settle at 1,595.5 dollars per ounce.

Gold broke a three-day losing streak to end slightly up Thursday, as the European concerns that had dominated trading earlier in the week subsided slightly.

News that European leaders had approved the next financial aid payment to Greece eased some of traders' worries regarding Greek elections and ensuing political uncertainty. Meanwhile, Spain announced they would nationalize troubled Bankia, a real estate lender.

The encouraging European developments subsequently sent the euro up against the dollar, while the greenback in turn declined to end an eight-day winning streak.

The euro traded at 1.2965 dollars in the afternoon. The Intercontinental Exchange (ICE) dollar index, which measures dollar against six other major currencies, traded at 80.079, off from 80.083 in late North American trading Wednesday.

The decline in the dollar lent support to gold, as a weaker dollar makes commodities in general cheaper for holders of other currencies.

Gold also took some strength from other more positive macroeconomic data released Thursday, particularly a report of U.S. initial jobless claims which showed a weekly decrease in claims filed.

According to the U.S. Department of Labor, in the week ending May 5, initial jobless claims fell by 1,000, with the four week moving average also decreasing by 5,250.

Outside market forces were also stronger Thursday, as the U.S. equities and energy markets regained some of Wednesday's losses. The Dow Jones Industrial Average was up around 40 points in afternoon trading, and crude oil once again traded above the 97 dollars a barrel level.

Silver for July delivery fell 6.3 cents, or 0.22 percent, to settle at 29.178 dollars per ounce.