The most active gold contract for December delivery was down 27.4 U.S. dollars, or 1.81 percent, to close at 1,483.7 dollars per ounce.
The U.S. ISM service sector activity index rose to 54.7 percent in October, up from 52.6 percent in September, with the upbeat economic news dulling haven demand for gold, prompting gold prices to touch fresh session lows shortly after the data were released.
The U.S. dollar index, which measures the buck against six rivals, went up 0.44 percent to 97.93 as of 1830 GMT.
Gold usually moves in opposite directions with the U.S. dollar, which means if the dollar goes strong, gold futures will fall as gold, priced in U.S. dollar, becomes expensive for investors using other currencies.
As for other precious metals, silver for December delivery dropped 49.8 cents, or 2.76 percent, to close at 17.568 dollars per ounce; platinum for January delivery was down 8.1 dollars, or 0.86 percent, to settle at 930.6 dollars per ounce. Enditem