Prices for gold rose on a combination of safe-haven demand and a weaker US dollar. Crude oil prices slipped.

In midday New York trade the Dow Jones Industrial Average fell 41.50 points, or 0.40 percent, to 10,367.96. The Standard & Poor's 500 Index lost 3.84 points, or 0.34 percent, to 1,110.71. The Nasdaq Composite Index dropped 5.32 points, or 0.23 percent, to 2,300.61.

European shares closed higher for a seventh straight session on Thursday, even as the US data diminished risk appetite.

The FTSEurofirst 300 index of top European shares closed up 0.25 percent at 1,041.84 points as solid demand for Spain's auction of government bonds boosted investor confidence in the euro zone's economic outlook.

The euro rose against the dollar after Spain's ability to sell bonds soothed worries about the country's public finances and squeezed short positions by investors who had been betting against the single currency.

The euro rose 0.41 percent against the dollar to $1.2357.

Against the yen, the euro dropped 0.20 percent to 112.29 yen. The greenback also fell against the yen, down 0.60 percent to 90.87 yen as the weak U.S. data increased risk aversion.

In commodities, spot gold prices rose $14.95, or 1.21 percent, to $1245.50.

US light sweet crude oil fell 96 cents, or 1.24 percent, to $76.71 per barrel.

After initially trading as much as $1 higher, London ICE Brent crude for August rose 3 cents to $78.17 by 12:45 p.m. EDT (1645 GMT).