* Gold retreats after biggest one-day rally in six weeks
* GRAPHIC-Gold/silver ratio: http://tmsnrt.rs/1UXSq7n
* GRAPHIC-2017 asset returns: http://tmsnrt.rs/2jvdmXl
(New throughout, updates prices, market activity and comments; adds second byline, NEW YORK dateline) NEW YORK/LONDON, Nov 7 (Reuters) - Gold prices fell 0.5 percent on Tuesday, retreating a bit from the previous day's rally as a stronger U.S. dollar reduced the appeal of safe-haven investments, and oil prices also dipped. On Monday, bullion rose as much as 1 percent for its biggest daily rise in six weeks, after news of a string of high-profile arrests in Saudi Arabia boosted oil to a 2-1/2-year high. Tuesday's retreat from that rally stayed within a $20 range, noted Bill ONeill, partner at Logic Advisors in Upper Saddle River, New Jersey. "Gold stuck within the $1,260-$1,280 range," he said. "The overall atmosphere for gold right now is not particularly positive. The safe-haven demand just isn't there."
Spot gold was down 0.5 percent at $1,275.30 an ounce
December delivery settled down $5.80, or 0.5 percent, at $1,275.80 per ounce. The dollar rose 0.3 percent versus the euro as investors bet that monetary policy would continue to diverge between the United States and the euro zone. Oil prices retreated after rallying Monday on an anti-corruption purge led by Saudi Arabia's Crown Prince Mohammed bin Salman. Some of the kingdom's political and business elite were arrested. Gold and crude oil are priced in U.S. dollars. A stronger dollar can pressure prices of dollar-priced commodities, which become more expensive to investors using other currencies. On Monday, gold also drew support from jitters linked to U.S. President Donald Trump's trip to the Far East, MKS's head of trading Afshin Nabavi said. Trump's visit to South Korea could provide gold with some support in coming days, traders said.
Among other precious metals, silver was down 1.6
percent at $16.96 an ounce. Its session high of $17.27 was the highest since Oct. 20. Silver outstripped gains in gold during Monday's rally, ending the day 2.5 percent higher. That pushed the gold/silver ratio to its lowest since mid-September at 74.39. "Not only was silver pulled up by gold yesterday its gains were also twice as pronounced," Commerzbank said in a note. "Silver ... is only just below the 200-day moving average. Any rise above this mark could spark technical follow-up buying and lend further buoyancy to the silver price."
Platinum was down 1.3 percent at $922.40 an ounce, while palladium was down 0.4 percent at $995.60 per
(Additional reporting by Vijaykumar Vedala in Bengaluru; editing by Greg Mahlich and David Gregorio)