Gold off 3-week highs as US data lifts dollar; palladium peaks.

Byline: S. Kamal Hayder Kazmi

Gold prices dipped on Thursday in volatile trade after hitting three-week highs earlier in the session as a set of better than expected U.S data lifted the dollar, while palladium notched a record peak on supply concerns.

Spot gold slipped 0.6 percent to $1,304.90 per ounce as of 12:26 p.m. EDT (1626 GMT), having earlier hit $1,320.22, its highest level since Feb. 28. The metal was set to snap five consecutive sessions of gains.

However, U.S. gold futures were trading 0.2 percent higher at $1,304.40 per ounce.

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