Aug 21 (Reuters) - Gold prices eased on Wednesday as the dollar halted its slide, while investors looked forward to the minutes from the U.S. Federal Reserve's latest policy meeting later in the day for more cues on interest rate cuts.
Spot gold was down 0.5% at $2,501.79 per ounce as of 9:43 a.m. ET (1343 GMT) after hitting a record high of $2,531.60 on Tuesday.
U.S. gold futures had lost 0.4% to $2,539.70.
The dollar held steady against its rivals after dropping to an over seven-month low, making gold less attractive for other currency holders.
"We're just seeing a pause as there is some mild profit-taking pressure by the shorter-term futures traders with the market awaiting the FOMC minutes," said Jim Wycoff, senior analyst at Kitco Metals.
An underlying bearish element for the gold market is the recent rally in the stock market, which could limit the upside in gold, Wycoff added.
Investors are keeping a close eye on the minutes of the Fed's July policy meeting due at 1800 GMT and Fed Chair Jerome Powell's keynote speech at the Jackson Hole symposium on Friday.
Recent data showed that inflation continued to moderate in the United States, boosting bets for a rate cut from the Fed in September.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Meanwhile, on Tuesday, Fed Governor Michelle Bowman said she remains cautious about any shift in central bank policy as she sees continued upside risks for inflation.
"The risk of economic recession plus today's continued geopolitical violence is likely to strengthen investor demand for bullion alongside the record pace of purchases by Asian and other emerging market central banks," said Adrian Ash, director of research at Bullionvault.
Analysts at ANZ said in a note that they see gold prices hitting fresh highs of $2,550/oz later this year.
Spot silver fell 0.5% to $29.29 per ounce, while platinum gained 2.3% to $967.90 and palladium rose 3.4% to $957.25.
Reporting by Anushree Mukherjee, Brijesh Patel and Sherin Elizabeth Varghese in Bengaluru; Editing by Tasim Zahid
