SINGAPORE (Commodity Online) : Gold steadied in Asian trade Thursday after a fall of 0.5 percent overnight on a rising dollar.

Gold for immediate delivery was seen trading at $1235.25 an ounce at 11.30 a.m Singapore time while US gold futures for August delivery was at $1236.01 an ounce.

Other precious metal prices were mixed. Spot platinum was down 0.4 percent at $1,560.50 per ounce, but palladium was up 1 percent at $475.75.

Analysts said the precious yellow metal took advantage of US Fed's proposal to keep interest rates low and uncertainty over the global economy.

After the Comex settlement on Wednesday, US Fed said at the end of a two-day policy meeting that the pace of U.S. economic recovery was faltering and renewed its vow to hold interest rates exceptionally low for an extended period.

Meanwhile, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings stood at 1,313.135 tones as of June 23, unchanged from a record marked the previous business day.

On Wednesday, gold futures for delivery in August dropped $6, or 0.5 per cent, to $1,234.80 on the Comex in New York. Earlier, the metal touched $1,225.20, the lowest level for a most-active contract since June 15.

Silver futures for July delivery dropped 44.3 cents, or 2.3 per cent, to $18.504 an ounce, the biggest drop since June 4.