Gold eases on profit taking after scaling more than one-month peak [Video]

Gold slipped on Thursday as investors booked profits after prices hit more than one-month high earlier in the day on increased expectations of an interest rate cut by the Federal Reserve next week.

Spot gold shed 0.5% to $2,704.41 per ounce, as of 0257 GMT. It hit the highest since Nov. 6 earlier in the session.

U.S. gold futures fell 0.5% to $2,744.60.

“It’s just profit booking because we’ve seen a good rally in gold due to various factors this week, including geopolitical tensions, China resuming gold purchases and the inflation number yesterday being in line with expectation,” said Ajay Kedia, director at Kedia Commodities, Mumbai.

“Overall, I think the current scenario remains supportive for gold.”

According to CME’s FedWatch Tool, traders now see a 98.4% chance of a 25-basis-points Fed rate cut on Dec. 18, compared with an about 86% odds before the U.S. inflation report.

U.S. consumer pricesincreased by the most in seven months in November, …