LONDON: Gold eased as the dollar held onto gains after its biggest one-day rally in over a month.

Spot gold was down 0.7 percent at $1,234.26 an ounce at 1346 GMT, having touched a low of $1,228.70 in earlier trade. US gold futures for June delivery were down $12.10 an ounce at $1,236.20.

Silver was flat at $16.19 an ounce, after reaching its highest since late October the previous day.

Platinum was up 0.1 percent at $995.57 an ounce, while palladium was up 1.9 percent at $553 an ounce. “Traders are not willing to accept that the Fed will not be raising the rates anytime soon,” Naeem Aslam, chief market strategist at Ava Trade, said.

“Most of the bad news is factored into the dollar and it appears they cannot push the greenback any further. This is impacting the price of gold.

The dollar rose another 0.1 percent versus a currency basket on Thursday as improved risk sentiment led investors to trim positions in low-yielding currencies, though it slipped from highs after weaker-than-expected March US consumer price data.