Gold fell on Thursday as investors took profits after prices hit a more than one-month high earlier in the day on heightened expectations of an interest rate cut by the Reserve federal government next week.
Spot gold lost 0.5% to $2,704.41 an ounce, by 0257 GMT. It reached its highest level since November 6 earlier in the session.
U.S. gold futures fell 0.5% to $2,744.60.
“This is simply profit taking as we have seen a good rally in gold due to various factors this week, including geopolitical tensions, China resuming gold purchases and the gold reading. “inflation yesterday was in line with expectations,” said Ajay Kedia, director at Kedia Commodities, Mumbai.
“Overall, I think the current scenario remains favorable for gold.
According to the CME's FedWatch tool, traders now see a 98.4% chance the Fed will cut rates by 25 basis points on Dec. 18, up from 86% before the inflation report was released. in the United States.
U.S. consumer prices saw their biggest rise in seven months in November, but that should not deter the Fed from cutting rates for a third time next week amid a stock market. employment in decline.
The focus now shifts to US Producer Price Index data, due at 1330 GMT, for insight into the Fed's 2025 policy.
Meanwhile, the European Central Bank is almost certain to cut rates again on Thursday and signal further easing in 2025.
Bullion is considered a safe investment during times of economic and geopolitical turmoil and thrives in a low interest rate environment.
Separately, the United Nations General Assembly voted overwhelmingly on Wednesday to demand an immediate, unconditional and permanent ceasefire between Israel and Palestinian Hamas militants in the Gaza Strip.
Spot silver fell 0.3 percent to $31.84 an ounce, platinum fell 0.2 percent to $937.55 and palladium lost 0.2 percent to $979.91.
