Gold extended losses to trade below $1900 an ounce on Thursday, retreating further from a 5-month high of $1916 hit early this week as the dollar strengthens slightly and as investors await a batch of economic data for the US including payrolls report. Also, traders continue to weigh prospects of a solid economic recovery, fears of persistent runaway inflation and bets for a quicker normalization of Federal Reserve monetary policy. The precious metal has played a crucial role as an inflation-hedging asset as investors moved to price in a roaring comeback for the US economy and increased inflation. Still, gold prices remain well above pre-pandemic levels.