Gold decline on substantial dollar ahead of US jobs data.

London  Gold dipped on Thursday, pressured by a slightly firmer dollar, but many investors were on the sidelines ahead of key US data that is expected to provide further clues about whether rates will rise this month."We are getting important data today and tomorrow, and gold is very much dependent on how the dollar and yields will react to that data, so it’s a bit of a waiting game," said Georgette Boele, commodity strategist at ABN Amro in Amsterdam.Spot gold was down 0.2% at $1,266.06 per ounce at 10am GMT. On Wednesday, it touched a session high of $1,273.74 an ounce, its strongest since April 25. US gold futures fell 0.5% to $1,265.60 an ounce.Pressuring gold was a slightly firmer dollar index, supported by higher US Treasury yields and solidifying expectations of a rise in US interest rates this month.The euro got a boost after a survey showed manufacturing across the eurozone grew at the fastest rate in more than six years during May.Positive payroll data from the US could mean the Fed will raise rates as expected at its June 13-14 meeting.Traders believe there is an 87% chance of a rate rise, according to CME Group’s FedWatch tool."Market participants are cautious ahead of the federal open market committee meeting next month," said Hareesh V, head of research at Geofin Comtrade.Gold, which has gained about 10% this year, has good support slightly below current levels, Boele said."Gold looks very well protected around the $1,250 area at the moment. You have the 200-day moving average supporting the price."Demand for American Eagle gold coins continued to be lacklustre, data from the US Mint showed, with sales for the first five months of the year tumbling 56% from the same period last year to 186,500 ounces.Among other precious metals, silver fell 1.1% to $17.10 an ounce and platinum shed 0.4% to $939.75.Palladium, which hit a four-week high at $821.90 an ounce on Wednesday, declined 0.7% at $811.47.