By Nick Godt, MarketWatch NEW YORK (MarketWatch) -- Gold futures lost further ground on Thursday, after overnight concerns about China's economy along with mixed U.S. earnings and jobless data, fuel safe-haven gains in the dollar. "Global equity markets are on the defensive on news that China's economy grew 'only' 8.9% year on year in the third quarter, missing estimates by a tenth of a percentage point," said Sal Guatieri, senior market economist at BMO Capital Markets, in a note. The report helped fuel risk aversion and bump up the dollar from 14-month lows. The U.S. currency has tended to act as a safe haven currency over the past year. A firmer dollar tends to pressure dollar-denominated commodities, and also competes with gold. The dollar index (DXY 75.25, +0.28, +0.37%) , which measures the U.S. unit against a basket of six major currencies, stood at 75.271, up from 74.983 late on Wednesday. Gold for December delivery lost $4.50, or 0.4%, to $1,059.80 an ounce. The thinly traded October contract lost $9.90, or 1%, to $1,053.80 an ounce. On Wednesday, Gold for December delivery gained nearly 1% as the dollar slumped, especially against the euro, with the shared currency rallying above the key $1.50 level. But some of the gains faded in electronic trade after the Federal Reserve's Beige Book report said most regions reported little or no increase to wage or prices pressures. Thursday's report of rising jobless claims further fueled mounting concerns that markets may have gotten too optimistic about the recovery in the U.S. economy and in profits. First-time claims for state unemployment benefits rose 11,000 to 531,000 in the week ended Oct. 17. It's the highest level since the week ended Sept. 26. Claims had fallen 34,000 in the prior two weeks. Other precious metals also traded lower. January platinum, the most active contract for the metal, dipped $6.20, or 0.5%, to $1,368.20 an ounce. December palladium lost $3.40, or 1%, to $338.10 an ounce.

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