Gold slipped on Thursday as the dollar firmed, while palladium extended gains to hit a two-year high on economic data and demand from the automobile sector. Spot gold was down 0.3 percent at $1,245.26 an ounce by 2:21 pm EDT (1821 GMT), retreating from an intraday peak of $1,253.12, its highest since February 28. US gold futures shed 0.3 percent to $1,246.60.
"The dollar has been a little bit stronger today, interest rates climbed up a touch and the stock market finally gave a positive performance prior to tonight's vote on healthcare - all of which means gold traders have pulled back a little," said George Gero, managing director at RBC Wealth Management.
The dollar index, which measures the greenback against a basket of currencies, was slightly firmer at 99.769. It had dropped to its lowest in nearly seven weeks at 99.547 on Wednesday. From a technical standpoint, gold's almost "V-shaped recovery" from the key $1,200 handle suggests more gains are likely, analysts said. Palladium climbed to a peak of $808.70, its highest since March 10, 2015, before paring gains to $799.60 for a rise of 1.7 percent. Spot silver rose 0.3 percent to $17.56, while platinum advanced 0.3 percent to $962.40.