Gold eases on profit taking after scaling more than one-month peak
Gold hits highest since Nov. 6
Current scenario remains supportive for gold - analyst
US PPI data due at 1330 GMT
Market sees 98% chance of 25-bp Fed rate cut next week
Adds graphic, updates with mid-session trading
By Rahul Paswan
Dec 11 (Reuters) -Gold slipped on Thursday as investors booked profits after prices hit a more than one-month high on increasedexpectations of an interest rate cut by the Federal Reserve next week.
Spot gold XAU= shed 0.3% to $2,711.00 per ounce, as of 0455 GMT. Earlier in the session, bullion hit its highest level since Nov. 6 at $2,725.79.
U.S. gold futures GCv1 fell 0.4% to $2,746.80.
"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 98.5% chance of a 25-basis-point Fed rate cut on Dec. 18, compared with about 86% odds before the U.S. inflation report.
U.S. consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Fed from cutting rates for a third time next week against the backdrop of a cooling labor market.
Focus is now on U.S. Producer Price Index data, due at 1330 GMT, for insights into the Fed's 2025 policy.
Meanwhile, the European Central Bank is all but certain to cut rates again on Thursday and signal further easing in 2025.
Zero-yielding goldis seen as a safe investment during economic and geopolitical turmoil and thrives in a low-interest rate environment.
Elsewhere, the United Nations General Assembly overwhelmingly voted on Wednesday to demand an immediate, unconditional and permanent ceasefire between Israel and Palestinian militants Hamas in the Gaza Strip.
Spot silver XAG= rose 0.3% to $32.02 per ounce, platinum XPT= was up 0.4% to $943.75, and palladium XPD= gained 0.8% to $989.20.
Spot gold price in USD per oz https://reut.rs/4izLvQa
Reporting by Rahul Paswan; Editing by Sherry Jacob-Phillips and Sumana Nandy
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