The data may support expectations that the U.S. central bank will cut its fed funds rate to 5.0 percent from 5.25 percent.
A rate cut often tends to weaken the dollar, making gold cheaper for holders of other currencies and lifting bullion demand. Gold is also seen as a hedge against oil-led inflation.
The dollar was slightly higher against the euro. Oil held above $75 a barrel, within sight of an all-time high, as investors balanced tightening U.S. crude stocks against OPEC's reluctance to boost supplies when it meets next week.
"Crude oil prices might remain a supportive factor as the rally yesterday was based on concern the inventories declined further and warnings that the hurricane season would be far from over," Dresdner Kleinwort said in a daily research note.
In other metals, silver fell to $12.22/12.26 an ounce from $12.30/12.33. Platinum rose to its highest in nearly a month at $1,277 an ounce before falling to $1,273/1,277, versus $1,271.50/1,278.50 in New York. Palladium was at $331/334 an ounce, down 80 cents.
Palladium is slowly regaining its footing after a recent sell-off as Chinese jewellers ramp up production ahead of next year's Olympic and investors buy the metal on price dips.
