While risk appetite grew before a monetary policy decision by the European Central Bank and investors were waiting for US PPI data to get signals about the Federal Reserve's interest rate outlook for signals about the Federal Reserve's interest rate outlook, gold prices have the fell sharply on Thursday, but remained close to a five-week peak

American gold futures fell 0.5% to $2,742.50. Spot gold fell 0.3% to $2,709.89 per ounce at 12:10 GMT. Backed by bets that the Fed will cut interest rates again next week after consumer price data was released on Wednesday, the bullion hit its highest level since November 6, earlier in the session. Gold has a tendency to thrive in a low interest rate environment.

Gold bullion is considered a safe investment in times of economic and geopolitical turmoil. Spot silver lost 0.2% to $31.83 per ounce, platinum lost 0.7% to $933.10, and palladium fell 0.4% to $977.72