Gold drops 2% as investors take profits after record high

Gold prices fell as investors booked profits

Gold prices fell on Tuesday as investors booked profits after the metal hit a new record high near $4,400 an ounce, supported earlier by expectations of US interest rate cuts and persistent safe-haven demand.

December gold futures declined 1.95% to $4,275.9 an ounce, after touching an all-time high of $4,393.6 earlier in the session.

Spot gold dropped 2.1% to $4,265.5 an ounce at 12:24 p.m. Makkah time, while spot silver slid 5.1% to $49.89 an ounce.

The US dollar index, which measures the greenback against a basket of six major peers, rose 0.3% to 98.86 points.

December silver futures lost 5.25% to $48.69 an ounce, while spot platinum declined 3.15% to $1,586.94, and palladium shed 4.15% to $1,434.1 an ounce.

Investors are awaiting US inflation data due later this week, which could offer clues on the future path of interest rates amid a lack of employment figures due to the ongoing government shutdown.