Gold prices were trading below record high levels on Wednesday after a rally fuelled by Western fund inflows and U.S. rate-cut optimism, as investors braced for minutes of the Federal Reserve's latest meeting for clarity on the depth of cuts.

Spot gold was unchanged at $2,514.03 per ounce, as of 0710 GMT, after hitting an all-time high of $2,531.60 on Tuesday. U.S. gold futures rose 0.1% to $2,551.80.

Gold has gained nearly $470 or 22% so far this year, with geopolitical tensions, uncertainty created by the upcoming U.S. Presidential elections and prospective rate cuts set to help power the precious metal to even loftier levels.

"Gold's glittering rally is a reflection of markets anticipating deeper Fed cuts," said OCBC FX strategist Christopher Wong.

Traders have fully priced a rate cut at the Fed's September meeting, with a 70% chance of a 25 basis points cut, according to the CME FedWatch tool.

The dollar slipped to its lowest this year, while benchmark 10-year Treasury yields also sank, making non-yielding bullion more attractive for investors.

Traders now await minutes of the Fed's July policy meeting due later in the day, and Fed Chair Jerome Powell's speech on the U.S. economic outlook this Friday at Jackson Hole.

"Given that the markets have already expected deep cuts to some extent, the bar is high for Powell to out-dove markets. Some reality check may suffice and not ruling out a pullback on gold prices in the near term," Wong added.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.20% on Tuesday from seven-month highs.

"While prices look to be headed lower, bears need to tread carefully, as I suspect strong support around previous records... and dip buyers will likely be tempted to return to the table," said City Index senior analyst Matt Simpson.

Spot silver edged 0.4% higher to $29.53 per ounce, platinum gained 0.5% to $951.10 and palladium fell 0.3% to $923.30.

(Reporting by Swati Verma in Bengaluru; Editing by Sherry Jacob-Phillips and Varun H K)