Gold is set for its biggest one-day rise in about a week, having gained over 1 percent in London as an investor push into safe-haven assets lifts the precious complex. Concern about the impact of the euro zone debt crisis and downbeat data from the U.S. have added to support for gold.

U.S. data that showed consumer prices posted their largest fall in nearly 1-1/2 years in May and a surprise rise in weekly unemployment claims increased the chances of the Federal Reserve maintaining its policy of ultra-low interest rates as the economy struggles to shake off the vestiges of recession.

U.S. crude oil futures fell below $77, more than $1 as a rise in jobless claims and a report showing factory growth plummeted in the U.S. Mid-Atlantic region weighed on oil.

The NYMEX July crude options expiration on Thursday was also cited as a factor in crude futures' volatility after crude closed at a sixweek high on Wednesday.

The report of higher-than-expected weekly U.S. jobless claims and the largest drop in U.S. consumer prices in nearly 1-1/2 years left U.S. shares lower and led to European share prices giving up their early gains.

Most estimates suggest production from the Organization of the Petroleum Exporting Countries has been rising since early 2009 as higher oil prices.

Copper prices hit their lowest in nearly a week, as worries about demand from top consumers the United States and China returned to haunt the market and traders noted the first rise in stocks in a month.

Copper has in recent days been boosted by a firmer euro against the dollar, on perceptions that the debt crisis in the euro zone may be easing and on strong manufacturing data from the United States, the world's largest economy.

But doubt about growth and demand prospects has re-emerged. Latest data shows copper stocks in LME warehouses rose 1,025 tonnes to 460,175 tonnes, the first rise since mid-May.

Courtesy: Religare Commodities

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