Gold prices fell from three-week highs due to profit-taking

Gold prices retreated from a three-week high hit earlier on Monday as investors took profits and traders adjusted their expectations for the Federal Reserve to cut interest rates pending further data to assess the rate outlook. Matt Simpson, senior analyst at City Index, said gold prices were under pressure as "some traders were looking to take profits near the $2,718 high." Gold futures had their best week since the epidemic last week. "I doubt last week's rally can continue given the shortened trading week caused by Thanksgiving in the U.S.," Simpson said. According to the CME's Fedwatch tool, traders see a 51% chance of the Federal Reserve cutting rates by another 25 basis points in December, down from 62% last week. IG market strategist Yeap Jun Rong said dovish U.S. policy signals and potential inflation surprises could support keeping rates unchanged in December, and the prospect of slower rate cuts could weigh on gold prices.