Spot gold dropped 1.1% to $4,912.26 an ounce, while gold futures for April declined 0.4% to $4,929.25/oz

Gold prices reversed early gains and dropped in Asian trade on Thursday, coming under pressure from a stronger dollar as anticipation of major central bank meetings and U.S. labour data saw traders prefer the dollar.

Cooling haven demand, after the U.S. and Iran confirmed that talks will take place on Friday, also pressured gold.

Spot gold dropped 1.1% to $4,912.26 an ounce by 02:17 GMT, while gold futures for April declined 0.4% to $4,929.25/oz.

Spot prices had rebounded as high as $5,092.31/oz on Wednesday, before relinquishing most gains and falling back below the $5,000/oz level by the end of the session.

Losses in gold came as Iran and the U.S. confirmed that they will hold talks this week, helping quell fears over an immediate escalation in the Middle East.

Metal prices were also pressured by a stronger dollar, with traders pivoting to the dollar in anticipation of interest rate decisions by the Bank of England and the European Central Bank, both due on Thursday.

The dollar also caught some bids ahead of U.S. nonfarm payrolls data due this Friday. The number is likely to factor into the outlook for interest rates.

The dollar extended gains from last week after U.S. President Donald Trump nominated Kevin Warsh as the next chairman of the central bank.

Warsh is viewed as the less dovish pick, and could keep broader monetary policy tight, even as interest rates fall.

Other precious metals also pulled back after a brief rebound this week. Spot silver prices slipped 6.9% to $82.3130/oz after a near 6% rally in the prior session.