Gold futures on the COMEX division of the New York Mercantile Exchange closed lower Thursday, as upbeat global economic data helped dull the metal's safe-haven appeal.

The most active gold contract for February delivery fell 16.8 dollars, or 1 percent, to settle at 1,669.9 dollars per ounce.

Gold fell 6.5 U.S. dollars, or 0.4 percent, to settle at 1,686. 7 U.S. dollars an ounce on Wednesday, giving back more than its gains made Tuesday. Gold once again failed to bust through the 1, 700 U.S. dollars mark. It's been trying on and off for a month since mid-December, according to market analysts.

On the economic front, data Thursday was mostly upbeat, likely dulling some of gold's safe-haven appeal. Analysts say, Thursday's better-than-expected U.S. initial claims print has increased speculation that the U.S. Federal Reserve will be able to remove the easing sooner rather than later, which is weighing on gold.

The U.S. Labor Department said first-time applications for jobless benefits fell 5,000 to a seasonally adjusted 330,000 in the week ended Jan. 19. That was the lowest level for first-time claims since January 2008, according to reports.

Also on Thursday, Morgan Stanley cut its 2013 outlook for average gold prices by 4 percent to 1,773 U.S. dollars an ounce. The bank said it is still far from giving up on the metals. "We remain bullish on the gold price outlook in 2013 despite recent selling pressure triggered by market concerns of an earlier-than- previously-anticipated tightening in U.S. monetary policy."

Silver futures finished Thursday with a loss for the first time in eight sessions. Against that backdrop, silver for March delivery fell 71.7 cents, or 2.21 percent, to close at 31.722 dollars per ounce.