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Gold prices consolidated in a tight range on Thursday, hovering close to a near seven-month high, as investors awaited a key inflation print to gauge whether interest rate cuts in the U.S. would come sooner than previously expected.

Spot gold was flat at $2,044.79 per ounce by 0351 GMT, after hitting its highest since May 5 on Wednesday, and was poised for its second straight monthly gain. Bullion was trading in a range of about $4 on Thursday.

U.S. gold futures for December delivery fell 0.2% to $2,045.30 per ounce.

"Prices seem to be taking a slight breather in today’s session, with some wait-and-see" ahead of the U.S. personal consumption expenditure data - the Fed's preferred inflation gauge - at 1330 GMT, IG market strategist Yeap Jun Rong said.

"Despite the U.S. 3Q GDP posing an upside surprise overnight, the data failed to sway market rate-cut bets, as sentiments continue to take its cue from more recent Fed (officials') comments."

Federal Reserve officials this week flagged the possibility of a rate cut in the upcoming months and expected growth to slow and inflation to continue to ease, dragging yields on 10-year Treasury notes to a two-and-a-half-month low of 4.2210%. [US/]

Lower interest rates reduce the opportunity cost of holding non-interest-bearing bullion.

Traders have now advanced their bets for a rate cut by the U.S. central bank from an 80% chance in May to a one-in-two chance in March, CME's FedWatch Tool shows.

Making gold less expensive for other currency holders, the dollar index drifted near three-month lows, and was set to log its worst monthly performance in a year in November.[USD/]

Investor focus will also be on comments from Fed Chair Jerome Powell, who is due to speak on Friday.

Spot silver fell 0.1% to $24.98 per ounce. Platinum was up 0.2% to $933.52. Palladium was steady at $1,027.45 per ounce