LONDON, Feb 27: Gold fell into negative territory in European trading on Thursday, pressured by a firmer dollar and gains on Wall Street.

Spot gold was quoted at $348.90/349.70 an ounce by 1553 GMT, down from New York’s close on Wednesday at $353.50/ 354.25 and off a session traded high of $356.60.

The dollar and the Dow gained after official data showed US manufacturers kicked off the new year on an unexpectedly strong note, with January orders for durable goods posting their biggest monthly jump since July.

Gold also lost ground after Iraq said it would respond to a UN order to destroy its al-Samoud missiles within the next two days.—Reuters