US GDP, PCE inflation data due next week
May increase volatility in precious metals
Physical demand in Asia remains muted amid high prices

LONDON, Oct 25 Reuters Gold prices fell on Friday as some investors booked profit after a recent rally that pushed bullion to a record high, although ongoing tensions in the Middle East helped limit the decline.

Spot gold eased 0.5 to 2,723.09 per ounce by 1119 GMT. Prices had hit an alltime high of 2,758.37 on Wednesday.

U.S. Secretary of State Antony Blinken said on Friday there was a real sense of urgency in getting to a diplomatic resolution to end the conflict in Lebanon between Israel and Hezbollah, while calling for the protection of civilians.

Approaching U.S. Nov. 5 presidential election, for which opinion polls show the race to the White House remains tight, are focusing attention on the economic, financial and geopolitical risks ahead.

Next week, investors in nonyielding gold will be focused on the U.S. inflation and economic growth data for clues about the health of the economy which may increase volatility in precious metals, said Adrian Ash, head of research at BullionVault.

But going into the knifeedge election, any dips in gold are being bought and remain shallow, he added.

Spot gold is up 31.9 so far this year. According to LSEG Workspace data, this is going to be gold39;s largest annual growth since 1979 if it stays near these levels.

The precious metal39;s rally has, however, dented demand in the…