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Gold prices have eased after their biggest daily gain in more than two years, coming under pressure as the US dollar climbed and global stocks rebounded from a six-day rout.

Spot gold was down 0.5 per cent at $1,217.81 an ounce on Friday, after bullion had jumped about 2.5 per cent the day before on safe-haven buying during an equities selloff.

Thursday’s peak of $US1,226.27 was the highest since July 31.

Spot gold was on track for its biggest weekly gain in seven weeks, up about 1.3 per cent for the week.

US gold futures settled down $US5.60, or 0.46 per cent, at $US1,222.

‘A rally in the US dollar is putting downward pressure on gold today,’ said Alex Turro, market strategist at RJO Futures.

The dollar index rose as global equities rebounded from a multiday selloff, boosted by strong export data in China.

‘Event-driven rallies usually don’t last long,’ said George Gero, managing director at RBC Wealth Management, adding that a rebound in equities was one of the main factors weighing on gold.

‘We need more (ammunition) for gold to move further as it has been very well abandoned with only a few central banks buying besides some retail buyers.’

Gold remains down about more than 10 per cent from its April peak, pressured by a strong dollar as the US-China trade war unfolds while the Federal Reserve has raised US interest rates.

The Fed hiked rates last month for the third time this year and is expected to raise them again in December.

‘Gold is going to be dictated by the US Federal Reserve,’ RJO Futures’ Turro said.

‘As long as interest rates continue to move higher, it’s going to continue to apply a lot of downward pressure on the precious complex.’

During Thursday’s surge, bullion broke above the narrow trading range of the past one and a half months.

‘Gold is trading fairly close to the 100-day moving average at $US1,228,’ MKS PAMP Group traders said in a note.

‘There should be plenty of resistance, but a close above that level could signal a move higher.’

In other precious metals, palladium fell over one per cent to $US1,065.72.

The metal rose to its highest since January 26 at $US1,096.80 in the previous session.

Silver was up 0.1 per cent at $US14.57 and platinum fell 0.7 per cent to $US833.49, hovering below the previous session’s more than two-month high of $US843.90.