Gold prices dip on profit taking as rate-cut bets ease

* U.S. PCE data, the Fed's inflation gauge, due on Friday

* Traders price in about 64% chance of rate cut by November

LONDON, May 28 (Reuters) - Gold prices slipped on Tuesday with investors booking profits after a recent rally and pressure from the reduced probability of the Federal Reserve rate cuts, while the market awaited key U.S. inflation data due later this week.

Spot gold fell 0.3% to $2,343.99 per ounce by 0940 GMT, after rising 0.7% on Monday.

The bullion fell below its 21-day moving average, which currently stands at $2,348, but was on track for the fourth consecutive month of growth with the 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.

Bullion is widely seen as an inflation hedge, but higher central bank rates increase the opportunity cost of holding non-yielding gold.

Fed meeting minutes released last week showed that the policy response, for now, would involve maintaining the benchmark policy rate at its current level but also reflected discussions of possible further hikes.

Traders currently price in about 64% chance of a rate cut by November, according to the CME FedWatch Tool, and wait for 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.

In the Asian gold market, the price level of $2,300 could be an entry point for some physical buying interest.

Spot silver fell 0.5% to $31.52 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 0.5% at $1,048.85, but was on track for a 12% gain in May, its highest monthly rise since November 2020. Palladium lost 1.1% to $978.24.

(Reporting by Polina Devitt in London; additional reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Sriraj Kalluvila)