09:16 AM EDT, 05/01/2025 (MT Newswires) -- Gold was sharply lower early on Thursday as the dollar and bond prices rise amid further data showing a slowing U.S. economy.

Gold for June delivery was last seen down US$93.20 to US$3,225.90 per ounce as it continues to correct from the April 21 record high of US$3,435.30.

The third-straight fall in prices comes as the United States on Wednesday reported its economy unexpectedly contracted in the first quarter, even ahead of the April 2 imposition of blanket tariffs on most U.S. trading partners by U.S. President Donald Trump.

"Disappointing economic prints this week from both the U.S. and China underscore the fragile state of the global economy and reignite fears of a tariff-driven growth slump," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.

Further evidence of weakening U.S. growth came early Thursday, with the Department of Labor reporting initial jobless claims rose by 18,000 to 241,000 last week, the highest since Feb.22 and ahead of the consensus estimate for 225,000 new claims, according to Marketwatch.

The United States will report April employment data on Friday, with a rise of 133,000 new positions expected, down from 228,000 in March.

The dollar rose early, with the ICE dollar index last seen up 0.43 points to 99.9. Treasury yields fell, as investors move to bonds as their safe haven of choice amid weakening gold prices. The U.S. two-year note was last seen paying 3.588%, down 2.7 basis points, while the yield on the 10-year note was down 1.4 points to 4.15%.