Gold Falls from Two-Week High Amid Profit-Taking

Gold fell on Thursday amid profit-taking after reaching its highest level in nearly two weeks in the previous session, while investors assess the likelihood of a U.S. interest rate cut in December amid mixed signals from the Federal Reserve.

By 0616 GMT, spot gold was down 0.3 percent at $4,153.49 an ounce. U.S. gold futures for December delivery fell 0.5 percent to $4,150 an ounce.

Brian Lan of Gold Silver Central said, "What they are looking for is profit-taking (after the rise on Wednesday)... It’s unclear what the Federal Reserve will do next, so gold is holding steady."

Some officials from the U.S. central bank, including New York Fed President John Williams and Federal Reserve Board member Christopher Waller, indicated that a cut next month may be warranted due to a weak labor market, which is putting pressure on Treasury yields.

The yield on the benchmark 10-year Treasury note remained near its lowest levels in a month on Wednesday.

However, their stance contrasts with that of other officials who have called for pausing monetary easing until inflation shows a significant move towards the target rate of two percent.

Kevin Hassett, the leading candidate to replace Jerome Powell as Fed Chair, stated that interest rates should be lower, thereby supporting President Donald Trump's position.

According to the CME FedWatch Tool, the market expects an 85 percent chance of a rate cut in December.

Gold, which does not yield interest, tends to rise when interest rates are low.

Data released on Wednesday showed that weekly jobless claims fell last week, although the labor market is struggling to provide enough jobs for job seekers.

For other precious metals, silver fell 0.6 percent in spot transactions to $53.04 an ounce, platinum rose 2.3 percent to $1,624.75, and palladium lost 0.3 percent to $1,419.