Gold prices steadied on Tuesday after reaching a record high, underpinned by expectations of more US rate cuts and a weaker dollar, as investors awaited Federal Reserve Chair Jerome Powell's speech for further policy cues.
Spot gold held its ground at $3,744.68 per ounce as of 0412 GMT, after hitting a record high of $3,759.02 earlier in the session, Reuters said.
US gold futures for December delivery rose 0.1% to $3,779.40.
The US dollar index extended its losses from the previous session, making greenback-priced gold cheaper for overseas buyers.
"I think it's predominantly a factor of monetary policy expectations, potentially lower interest rates, and upside risks to inflation," said Capital.com analyst Kyle Rodda.
"The short-term trend is still bullish intact, but on an intraday basis, we do expect a short-term pullback more due to technical factors," OANDA senior market analyst Kelvin Wong said.
Investors are closely awaiting Powell's speech, due at 1635 GMT, for signals on the central bank's policy. The US Personal Consumption Expenditures index, Fed's preferred inflation gauge, is due on Friday.
New Federal Reserve Governor Stephen Miran said on Monday that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts, a view countered in remarks by three of his colleagues who feel the central bank needs to remain cautious about inflation.
According to the CME FedWatch tool, investors see a 90% probability of a 25-basis-point rate cut in October and a 75% chance of another one in December.
"We see slowing economic growth, higher inflation, the shifting geopolitical landscape and a weaker USD keeping gold’s investment demand strong," ANZ said in a note.
Spot silver fell 0.5% to $43.84 per ounce, hovering near a 14-year high. Platinum was down 0.2% to $1,413.80 and palladium inched lower 0.5% to $1,173.18.
