Gold prices steadied on Thursday after hitting a record high on the previous session, aided by the expectations for another big rate cut by the U.S. Federal Reserve, while traders await Federal Reserve Chair Jerome Powell's comments for further hints on the policy outlook.

FUNDAMENTALS

* Spot gold held its ground at $2,656.60 per ounce, as of 0021 GMT. Bullion hit a record high of $2,670.43 on Wednesday.

* U.S. gold futures edged 0.2% lower to $2,680.00.

* The report from the Commerce Department on Wednesday also showed sales of new U.S. single-family homes fell less than expected in August.

* The Federal Reserve delivered a 50-bp cut at its last policy meeting and traders see a 58% chance of another half-percentage-point cut in November, according to CME FedWatch Tool.

* Zero-yield bullion tends to be a preferred investment in a low interest rate environment and during geopolitical turmoil.

* Federal Reserve Governor Adriana Kugler stated on Wednesday that she views U.S. monetary policy as "restrictive" and with ongoing disinflation, she believes it is reasonable to consider lowering the policy rate.

* Elsewhere, China's central bank unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target.

* The intensifying conflict between Iran-backed Hezbollah in Lebanon and Israel also supported gold prices, with cross-border rockets launched by both sides increasing fears of a wider conflict.

* Investors will look forward to Federal Reserve Chair Jerome Powell remarks due later in the day, along with U.S. inflation data due on Friday.

* Meanwhile, Poderosa, one of Peru's largest gold miners, said on Wednesday that it had faced a fresh attack by "criminals" linked to illegal mining on one of its facilities in the Andean nation, which left a security agent dead.

* Spot silver was steady at $31.86 per ounce, platinum rose 0.7% to $995.35 and palladium gained 0.7% to $1,044.72.

 

DATA/EVENTS (GMT) 1230 US Durable Goods Aug 1230 US GDP Final Q2 1230 US Initial Jobless Clm 21 Sept, w/e (Reporting by Daksh Grover in Bengaluru; Editing by Alan Barona)