* Silver hits 5-month low

* Palladium down 18% since scaling record peak in March (Adds comment, updates prices)

By Sethuraman N R

May 17 (Reuters) – Gold fell on Friday, following its biggest one-day percentage loss in a month in the previous session, on a firmer dollar and increased investor appetite for riskier assets due to strong U.S. data and corporate results.

Spot gold fell 0.1% to $1,285.01 per ounce as of 0311 GMT.

U.S. gold futures was 0.1% lower at $1,285.20 an ounce.

Spot gold fell 0.8% on Thursday, its biggest one-day percentage decline in a month after risk sentiment improved.

“Markets are very much inclined towards the riskier assets. Investors are trying to price in breakthrough in talks due to the conciliatory