Gold edges lower from near three-week peak on profit-taking

Gold edged lower in early Asian trade on Monday from a near three-week peak, as investors booked profits amid increasing bets of a U.S. interest rate cut later this month, while silver hit a record high.

FUNDAMENTALS

* Spot gold was down 0.2% at $4,221.68 per ounce, as of 0109 GMT, after hitting its highest level since November 13 on Friday. U.S. gold futures for December delivery were up 0.2% at $4,261.60 per ounce.


* Silver climbed 2.2% to a fresh high of $57.59 per ounce.

* U.S. rate futures are pricing in an 87% chance of a rate cut in December, according to the CME's FedWatch tool.

* Recent dovish remarks from U.S. Federal Reserve Governor Christopher Waller and New York Fed President John Williams, combined with softer economic data following the recent government shutdown, have strengthened expectations that the central bank will cut rates this month.

* Meanwhile, White House economic adviser Kevin Hassett, who has emerged as a frontrunner for the post of Fed Chair, said on Sunday that he would be happy to serve as the next chairman of the U.S. central bank if chosen by President Donald Trump

* Like Trump, Hassett believes interest rates should be lower.

* Non-yielding gold tends to perform well in low-interest-rate environments.

* Investors are looking ahead to U.S. manufacturing and private payroll data due later this week to gauge chances of a rate cut at the central bank's December 10 meeting.

* The U.S. dollar held near its lowest level since November 17, making greenback-priced gold less expensive for other currency holders.

* Elsewhere, platinum lost 0.2% to $1,669.15, while palladium gained 2.3% to $1,483.51.

DATA/EVENTS (GMT)

Japan S&P Global Mfg PMI Final SA Nov

0030 0145 China RatingDog Manufacturing PMI Final Nov

0850 France HCOB Manufacturing PMI Nov

0855 Germany HCOB Mfg PMI Nov

0900 EU HCOB Mfg Final PMI Nov

0930 UK S&P GLOBAL MANUFACTURING PMI Nov

1445 US S&P Global Mfg PMI Final, ISM Manufacturing PMI Nov.