Gold prices rose on Thursday, a day after U.S. inflation data suggested the Federal Reserve might reduce interest rates next month though the extent of cuts remains uncertain, prompting investors to await further economic indicators.

Spot gold was up 0.5% at $2,458.74 per ounce, as of 1010 GMT, just $25 shy of the record high of $2,483.60 scaled last month. U.S. gold futures rose 0.7% to $2,496.50.

"Gold continues to find resistance in the $2,475-80 area with traders increasingly looking for the rate cut cycle to start before potentially adding more exposure," said Ole Hansen, head of commodity strategy at Saxo Bank, adding currently the market is torn between whether a 25 or a 50-basis point will be delivered next month.

Markets see a 100% chance of a U.S. cut rate in September, according to the CME FedWatch Tool.

Data on Wednesday showed that the U.S. consumer prices rose moderately in July and the annual increase in inflation slowed to below 3% for the first time in nearly 3-1/2 years, opening the door wider for the Fed to cut interest rates next month.

Atlanta Fed President Raphael Bostic is open to an interest-rate cut in September, he told the Financial Times, adding the Fed can't "afford to be late" to ease monetary policy.

A low interest rate environment tends to boost non-yielding bullion's appeal.

The market focus will be now on U.S. retail sales and initial jobless claims data, both due at 1230 GMT.

"If the labour market softens that would be mildly supportive for gold, and vice versa," said StoneX analyst Rhona O'Connell.

Among other metals, spot silver gained 1.7% to $28.06 per ounce.

"Silver gaining some ground on gold, supported by rising copper prices amid fears to supply from strike action at the world’s biggest mine in Chile," Hansen said.

Platinum rose 1.8% to $935.77 and palladium dipped 0.1% to $934.50.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shreya Biswas)