As indicators of a robust U.S. economy and employment market fueled concerns about increasing interest rates, gold prices continued to decline on Thursday and were suffering significant weekly losses.

Spot gold traded mute at $1,935.41 per ounce, meanwhile gold futures slumped by 0.2% to $1,970.75 an ounce.

Over the past two days, the price of gold has dropped by around $30, with December futures moving farther away from the crucial $2,000 per ounce level as statistics revealed that private payrolls increased significantly more than anticipated in July.

Prior to the release of the official nonfarm payrolls statistics on Friday, the reading increased fears about a healthy job market and strengthened the dollar. Most metal prices fell as a result of dollar strength.

Even while Fitch's reduction of the U.S. sovereign rating caused risk aversion in other financial markets, the yellow metal didn't see much demand as a safe haven.

Analysts, however, claimed that the decision was primarily motivated by worries about overspent fiscal spending and political squabbles over policy and would have little meaningful impact on financial markets.