Gold prices slipped on Tuesday with investors booking profits after a recent rally, amid pressure from the reduced probability of Federal Reserve rate cuts, while the market awaited key U.S. inflation data due later this week.

Spot gold fell 0.3% to $2,344.20 per ounce by 1119 GMT, after rising 0.7% on Monday.

Bullion fell below its 21-day moving average, which stands at $2,348, but was on track for a fourth consecutive month of growth with a 2.5% gain in May. The spot price hit a record high of $2,449.89 on May 20.

"Gold, silver and PGMs (platinum group metals) are subject to some near-term profit-taking after rallies recently," said Amelia Xiao Fu, head of commodity market strategy at Bank of China International.

Non-yielding bullion, widely seen as an inflation hedge, took a hit after Fed meeting minutes last week showed that the policy response, for now, would involve maintaining the benchmark rate at its current level, but also reflected discussions of possible further hikes.

Traders are pricing in about a 63% chance of a rate cut by November and await the core personal consumption expenditures price index (PCE), the Fed's preferred inflation gauge, due on Friday.

"Nevertheless, gold prices are likely to remain fairly supported by buying-on-dips demand and central bank diversification," Xiao Fu added.

Demand from global central banks for gold has been elevated for two years as they diversify their foreign currency reserves.

Julius Baer lifted its 3- and 12-month gold price target to $2,450 and $2,550 on Tuesday amid continued central bank gold buying and demand from investors and consumers in Asia.

"During the past few months, demand for gold has started to be dominated by Asia, where the willingness to pay for it as a hedge against economic and geopolitical risks seems even higher than what we had expected," said Julius Baer analyst Carsten Menke.

Spot silver fell 0.3% to $31.59 after a 4.4% jump on Monday. The metal is heading for 20% growth in May, its largest monthly gain in almost four years.

Platinum was down 0.8% at $1,045.96, but was on track for a 12% gain in May, its highest monthly rise since November 2020. Palladium lost 1.5% to $973.49.

(Reporting by Polina Devitt in London; Additional reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Sriraj Kalluvila and David Holmes)