NEW YORK (AP) - Gold and silver prices slipped Thursday, despite a sharp rise in U.S. jobless claims and the dollar's drop against the euro.

However, without the effect of a partial government shutdown in Puerto Rico, jobless claims would have dropped from the previous week, the Labor Department said, suggesting strength in the job market.

Investors typically turn to safe-haven gold when the U.S. economy appears to be weakening.

June gold futures settled $11 lower at $687.80 an ounce on the New York Mercantile Exchange.

Analysts at MKS Finance said precious metals prices have the potential to go higher, but that volatility plagues the market.

"For the short term we believe that the metal will continue being influenced by the U.S. dollar moves and that the consolidation phase is not over yet," the analysts said.

The dollar fell against other major currencies Thursday, with the euro buying $1.2829 in late afternoon New York trading, up from $1.2741 late Wednesday.

July silver fell to a low of $12.50 an ounce Thursday -- its lowest level April 27 -- before settling at $12.52 an ounce, down 72 cents from a day earlier.

Platinum settled below the key $1,300-an-ounce level for the first time since Monday. July platinum closed $18.60 lower at $1,297.80 an ounce.

Palladium also ended down at $372.50 an ounce, a loss of $10.60 on the day.

Base metals and energy prices, however, rose on Thursday.

The most-active July copper contract rose 3.95 cents to settle at $3.7110 per pound