Mumbai: Gold prices eased slightly on Tuesday after reaching a record high in the previous session, as investors took profits amid a reduction in safe-haven demand.

Spot gold dipped 0.3% to $4,340.99 per ounce, following Monday's peak of $4,381.21. U.S. gold futures for December delivery were flat at $4,357.80 per ounce.

Analysts attribute the pullback to profit-taking and a decrease in demand for gold as a safe-haven asset. Tim Waterer, Chief Market Analyst at KCM Trade, noted that "any pullbacks on gold will be viewed as buying opportunities whilst the Fed remains on their current rate-cutting trajectory."

Markets are anticipating a quarter-point interest rate cut by the U.S. Federal Reserve this month, with another expected in December. Gold, which does not yield interest, typically benefits from lower rates as investors seek alternative assets.

Investors are also awaiting U.S. inflation data, scheduled for release on Friday after a delay due to the ongoing government shutdown. The data is expected to show a 3.1% year-over-year increase in the Consumer Price Index for September.

In other metals, silver fell 1.2% to $51.83, platinum slipped 0.7% to $1,627.53, while palladium inched up 0.1% to $1,497.62.

Despite the recent dip, the outlook for gold remains positive, supported by expectations of further interest rate cuts and ongoing geopolitical and economic uncertainties.