Gold slips from over two-month peak as investors cash in on rally

In other metals, spot silver XAG= fell 1.36% to $64.41 per ounce having climbed to its highest since June 22 in the previous session.

Platinum XPT= fell 1.93% to $1,722.65 per ounce and palladium XPD= fell 2.16% to $1,339.87 per ounce.

(Reporting by Dharna Bafna and Swati Verma in Bengaluru; Editing by Mrigank Dhaniwala)

Gold reversed course to fall about 1% on Thursday as investors booked profits after softer-than-expected U.S. inflation figures slashed expectations of near-term Federal Reserve rate hikes and sent the non-yielding metal's prices to a more than two-month high.

Spot gold XAU= fell 0.7% to $4,373.29 per ounce by 0838 GMT, having climbed about 1% to its highest since June 5 in early Asia trade. U.S. gold futures GCcv1 for December delivery fell 0.8% to $4,430.20 per ounce.

"Gold has reversed its recent rise, slipping below important chart support at $4,387 as profit-taking set in after a stellar run," said independent analyst Ross Norman.

"Arguably the market was over-positioned ahead of soft inflation data — having bought the rumour, it is now selling the fact," Norman said.

Despite setbacks, gold is keen to resume its bull run, but that rally is on hold for now as geopolitics currently favour the dollar as the go-to safe haven, he added. USD/

Fed policymakers are likely to feel little fresh urgency to raise interest rates next month after data on Wednesday showed inflation cooled on a year-over-year basis for a second straight month.