Inflation surprise may prompt December rate hold, says analyst
Market sees 51 chance of 25bp Fed rate cut in December
Fed39;s Nov meeting minutes, GDP data, core PCE due this week

Nov 25 Reuters Gold dropped nearly 2 on Monday, weighed down by profittaking after a fivesession rally, with further pressure from the announcement of fund manager Scott Bessent as the next U.S. Treasury secretary.

Spot gold was down 1.8 at 2,664.53 per ounce, as of 0619 GMT, after declining more than 2 earlier in the session. Bullion had hit its highest since Nov. 6 earlier in the day.

U.S. gold futures shed 1.7 to 2,666.40.

Gold39;s fivesession rally has paused due to some profittaking and Donald Trump39;s pick of Bessent as the next U.S. Treasury secretary, hinting at tempered use of tariffs and easing U.S.China trade uncertainty, said IG market strategist Yeap Jun Rong.

Presidentelect Trump has floated the idea of a 60 tariff on Chinese goods and at least a 10 levy on all other imports.

Gold is considered a safe investment during times of economic and political uncertainty.

Investors are also awaiting minutes of the Federal Reserve39;s November meeting, GDP data first revision, and core PCE figures, all due this week.

Traders currently see a 56 chance of another 25basispoint rate cut in December, compared to 62 last week, according to the CME Fedwatch tool.

Recent less dovish signals from U.S. policymakers suggest any unexpected rise in inflation could strengthen expectations of…