The gold price fell on Monday and hovered around the key level of $2,500. Traders took their profits after bullion hit an all-time high in the previous session due to expectations of a reduction in US interest rates next month

Spot gold was down 0.2% at $2,502.78 per ounce, at 3:17am GMT, and U.S. gold futures rose 0.2% to $2,541.80. According to Tim Waterer, Chief Market Analyst, KCM Trade, “Gold has been chasing the psychological level of $2,500 for several months, and now that it has been reached, we are seeing natural profit-taking.” The CME's FedWatch tool estimates that traders are confident that the US Fed will cut interest rates next month and the focus is now on the extent of the reduction. They estimate the chances of a reduction of 25 basis points at 75.5%

Elsewhere, silver rose 0.2% to $29.08 per ounce, platinum gained 0.4% to $957.75, and palladium lost 0.4% to $947.13 per ounce.