NEW YORK (TheStreet ) -- Gold prices were lower Thursday after U.S. economic data showed signs of improvement. Gold for February delivery was down $7.60 at $1,606.00 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1618.60 and as low as $1604.40 an ounce while the spot price was down $11.80, according to Kitco's gold index. Silver prices were up 12 cents at $29.36 an ounce while the U.S. dollar index was slightly higher at $80.03. Gold prices were losing steam after a spate of U.S. economic data suggested the economy continues to recover at a slow but steady rate. Vote: Where will gold prices finish in 2011? The latest reading on initial jobless claims for the week ended Dec. 17 dropped by 4,000 to a better than expected 364,000. Economists had forecast a rise to 375,000. The reading from the prior week was upwardly revised from 366,000 to 388,250. U.S. consumer sentiment also showed improvement this month. An index on consumer sentiment from the University of Michigan came in at 69.9 in December, after a revised 64.1 in the prior month. Economists had expected the reading to edge up to 68 after an original reading 67.7 for November. The Conference Board's index of leading indicators, another gauge of the state of the economy, rose 0.5% in November, better than the 0.3% expected and adding to the 0.9% increase in the prior month. Gold was also dipping as the U.S. dollar index continued to strengthen, rising 0.053% to $80.041, making gold more expensive to buy in other currencies. Michael Burke, TradeStation's vice president of institutional training, said Wednesday that he thinks gold is in a consolidation phase between $1,550 and $1,650 an ounce with $1,600 being the magic number. "If it stays between $1,550 and $1,600, that is not a good sign." Burke sees gold in a mid-term downtrend and says it's hard to see where buyers would come back in. "This is one of those opportunities where you let the market consolidate for a while and wait for direction." Burke says the longer gold consolidates, the bigger the move will be whether up or down. George Gero, financial consulatant at RBC Wealth Management, says he thinks the year-end result of high margin deposits and volatility have kept traders from taking large, new positions. "Still looking for some consistent closes over $1,650 and then some buy stops over $1,700 if activity over [the] holiday weeks allow it," Gero says. Gold failed to close Wednesday above the 200-day moving average as the U.S. dollar strengthened through the trading session. The precious metal has continued to trade in line with commodities and equity markets. "News is overshadowing everything," Burke said Wednesday. "It doesn't matter what the fundamentals are right now. [At the] end of the year, there are not that many traders in place, so every little influence looks magnified." Gold mining stocks were choppy Wednesday. Kinross Gold(KGC_) was down 2.1% at $11.55 while Yamana Gold(AUY_) was sliding 0.79% at $15.05. Other gold stocks, Agnico-Eagle(AEM_) and Eldorado Gold(EGO_) were trading lower at $36.50 and $13.42, respectively.

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