Gold prices retreated on Monday from their highest level in nearly three weeks, as investors took profits amid growing expectations of a US interest rate cut later this month, while silver hit a new record high.
Gold fell in spot trading by about 0.1% to $4,225.19 an ounce, after hitting its highest level since November 13 on Friday.
Meanwhile, U.S. gold futures for December delivery rose 0.1% to $4,261.00 an ounce.
Silver jumped 2.2% in spot trading, hitting a new high of $57.59 an ounce.
Markets currently expect an 87% probability of an interest rate cut this month, according to the CME Group's FedWatch tool.
Recent statements by Christopher Waller, a member of the Federal Reserve Board of Governors, and John Williams, president of the Federal Reserve Bank of New York, along with weak economic data following the recent government shutdown, have contributed to increased expectations of an interest rate cut this month.
Gold, which does not generate returns, typically benefits in an environment of low interest rates and during periods of geopolitical uncertainty.
Investors are awaiting US manufacturing and private sector employment data, due this week, to assess the likelihood of an interest rate cut at the Federal Reserve's upcoming meeting on December 10.
The dollar held near its lowest level since November 17, making dollar-denominated gold less expensive for holders of other currencies.
In other precious metals, platinum fell 0.2% to $1,669.15, while palladium rose 2.3% to $1,483.51.
