Gold futures on the COMEX division of the New York Mercantile Exchange fell further on Thursday on a stronger dollar.

The most active gold contract for April delivery fell 9.6 dollars, or 0.58 percent, to settle at 1,635.5 dollars per ounce.

Thus, gold prices closed at the lowest level in nearly six months, and have lost 2.5 percent so far this year.

Euro's going weak as a result of worse-than-expected economic shrinkage in the eurozone in the fourth quarter of 2012 boosted gold. The dollar index, a gauge of the greenback against a basket of currencies, climbed to 80.489 from 80.082 on Wednesday.

With the G20 meeting just around the corner, investors were more cautious. It is expected that the meeting will reiterate the commitment to avoid a currency war, which will tarnish gold's safe haven nature.

A drop in the U.S. jobless claims also dampened gold, with jobless claims in the week ended Feb. 9 falling by 27,000 to a seasonally adjusted 341,000.

China's 7-day Lunar New Year holiday also added a weak touch to gold.

Though some market analysts foresee a bullish outlook for gold, global demand for the precious metal remained weak at present.

The World Gold Council released a report Thursday saying that central banks bought 534.6 tons of gold in 2012, the most since 1964, as global gold demand reached a record level.

Gold demand in India soared over 41 percent in the fourth quarter of 2012.

Silver for March delivery lost 51.6 cents, or 1.67 percent, to close at 30.353 dollars per ounce. Platinum for April delivery dropped 18.8 dollars, or 1.09 percent, to close at 1,710.9 dollars per ounce.

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