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 25bp Fed rate cut next week

Dec 12 Reuters Gold slipped on Thursday as investors booked profits after prices hit a more than onemonth high on increased expectations of an interest rate cut by the Federal Reserve next week.

Spot gold was little changed at 2,717.80 per ounce, as of 0728 GMT. Earlier in the session, bullion hit its highest level since Nov. 6 at 2,725.79.

U.S. gold futures fell 0.2 to 2,750.70.

It39;s just profitbooking because we39;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 CME39;s FedWatch Tool, traders now see a 98.6 chance of a 25basispoint 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 Fed39;s 2025 policy.

Meanwhile, the European Central Bank is all but certain to cut rates again on Thursday…