LONDON: Gold fell from one-month highs on Friday after US Federal Reserve Chair Janet Yellen kept the door open to an increase in interest rates later this year, sparking a rally in the dollar.

Gold rallied after the Fed opted at its September policy meeting to keep rates on hold, hitting its highest since Aug. 25 on Thursday as dollar weakness prompted a wave of short covering. It has failed to maintain those gains, however.

Spot gold was down 0.6 percent at $1,146.86 an ounce at 1340 GMT, having climbed 2.1 percent on Thursday, its biggest one-day rise since January. US gold futures for December delivery were down $6.90 an ounce at $1,146.90.

Silver was up 0.1 percent at $15.13 an ounce, while platinum was down 0.9 percent at $943.74 an ounce. Palladium was up 1.5 percent at $663.25 an ounce, off an earlier near 12-week high at $674.50.

Platinum hit a 6-1/2-year low on Wednesday and is set for its biggest weekly drop since mid-July on fears that demand from the auto sector, where the metal is used in diesel catalysts, could fall following the Volkswagen emissions scandal.

In contrast, Palladium, which is used more heavily in gasoline autocatalysts, is poised for its biggest weekly rise since March 2013, up 8 percent, on expectations that consumers could move away toward gasoline vehicles.