Gold edged lower on Thursday, weighed down by a firmer dollar, while palladium hit its highest price in two years, helped by economic data.
Spot gold dropped 0.29 percent to $1,245.29 per ounce, retreating from an intraday peak of $1,253.12, its highest since Feb. 28.
U.S. gold futures for April delivery were $2.50 lower to settle at $1,247.20.
"The most important reason is that the dollar is stronger and yields in the U.S. are edging a little higher. Later in the year I expect prices to move higher, but for the moment $1,250 is the top end of the range," said ABN Amro commodities strategist Georgette Boele in Amsterdam.