PRECIOUS-Gold eases from near two-week high as investors book profits

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Kevin Hassett, frontrunner for Fed Chair, says rates should be lower

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85% chance of a rate cut in December - CME FedWatch tool

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Weekly jobless claims fell last week

(Updates prices for Asia session close)

By Ishaan Arora

Nov 27 (Reuters) - Gold edged lower on Thursday on profit-taking after it hit a near two-week high in the previous session, while investors weighed the possibility of a December U.S. interest rate cut amid conflicting signals from the Federal Reserve.

Spot gold fell 0.3% to $4,153.49 per ounce, as of 0616 GMT. U.S. gold futures for December delivery slipped 0.5% to $4,150.0 per ounce.

"What they're looking to do is take profits (after Wednesday's climb)... The Fed isn't clear of what they're going to do next, so gold is just consolidating," GoldSilver Central MD Brian Lan said.

Conflicting signals on the timing and magnitude of rate cuts have accelerated hedging flows into derivatives tied to overnight rates, with investors seeking protection against heightened policy uncertainty.

Some Fed officials, led by New York Fed President John Williams and Governor Christopher Waller, have stated a December easing may be warranted due to the labor market weakness putting downward pressure on Treasury yields.

Benchmark 10-year Treasury yields held near one-month lows in the previous session.

Their stance, however, contrasted with several regional Fed presidents advocating a pause in easing until inflation shows a more convincing move toward the 2% target.

Meanwhile, Kevin Hassett, who has emerged as a frontrunner to replace Jerome Powell as Fed Chair, like U.S. President Donald Trump, has said rates should be lower.

U.S. rate futures are pricing in an 85% chance of a rate cut in December, according to the CME's FedWatch tool.

Non-yielding gold tends to perform well in a low-interest-rate environment.

Weekly jobless claims fell last week, data on Wednesday showed, though the labor market is struggling to generate enough jobs for those out of work.

U.S. consumer confidence also weakened in November on concerns regarding jobs and household financial outlook.

Elsewhere, spot silver fell 0.6% to $53.04 per ounce, platinum gained 2.3% to $1,624.75, and palladium lost 0.3% to $1,419.0. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich and Eileen Soreng)