Gold declines after recording its highest level in more than a month

Gold prices fell today, as investors took profits after prices hit their highest level in more than a month earlier today amid growing expectations that the Federal Reserve (US central bank) will cut interest rates next week.

Gold fell in instant transactions by 0.5 percent to $2,704.41 per ounce by 02.57 GMT, after recording the highest level since November 6 earlier in the session.

US gold futures also fell 0.5 percent to $2,744.60.

According to the CME Fed Watch tool, traders now expect 98.4 percent of the US Federal Reserve to cut interest rates by 25 basis points on December 18, compared to odds of about 86 percent before the US inflation report.

Consumer prices in the United States rose by the most in seven months in November, but this is unlikely to deter the US Federal Reserve from cutting interest rates for a third time next week against the backdrop of a slowdown in the labor market.

Gold is usually seen as a safe investment in times of economic and geopolitical turmoil, and rises in a low interest rate environment.

As for other precious metals, silver fell in spot transactions 0.3 percent to $31.84 per ounce, platinum fell 0.2 percent to $937.55, and palladium fell 0.2 percent to $979.91.