LONDON: Gold slipped on Thursday from a three-month high in the previous session after robust US economic data pointed to a stronger economy, increasing the likelihood that the Federal Reserve will raise US interest rates.

Spot gold was down 0.6 per cent at $1,234.36 an ounce by 1619 GMT, while US gold futures dropped 0.3pc t o $1,235.50.

With gold striking $1,244.67, its highest since Nov. 11, on Wednesday, some investors had turned cautious and were cashing in their bets on higher prices, Bhar said.

SPDR Gold Trust, the world`s largest gold-bacl(ed exchangetraded fund, increased its bullion holdings for a sixth day on Wednesday. Spot silver fell by 0.6pc to $17.67 an ounce, just off the $17.86 three-month high reached in the previous session. Palladium was up 0.3pc at $770.97.-Reuters