Spot gold was down 0.8% at $1,414.60 per ounce as of 1:43 p.m. EDT (1743 GMT), having earlier touched $1,410.77 - lowest since July 17.
US gold futures settled down 0.6% at $1,414.70.
Earlier, prices rose as much as 0.5% after the ECB left benchmark rates unchanged, with the bank's chief sounding the need for a "significant degree of monetary stimulus" down the road.
"Gold sold off on good news out of the US with the fact that we are going into the Fed meeting next week," said Bob Haberkorn, senior market strategist at RJO Futures.
Weekly US jobless claims number fell to a three-month low last week, pointing to strength in
the labor market, while new orders for key US-made capital goods surged 1.9 % in June.
"However, these two numbers will pass by as the day goes on and traders will be back to being focused on the Fed next week. People want to be long heading into the meeting," Haberkorn said.
Market participants are now looking ahead to the US central bank's July 30-31 monetary policy meeting where it is expected to trim its interest rate by at least 25 basis points.
Among other precious metals, spot palladium edged down 0.6% to $1,531.07 per ounce, while platinum slid 0.9% to $868.04, after touching its highest in nearly three months earlier in the session. Silver slid 1.2% to $16.39 per ounce. It has gained about 16% since a near six-month low of $14.25 hit in late May.