Gold prices hit a record high on Wednesday, as comments from Federal Reserve officials boosted expectations of a September interest rate cut in the U.S.

Spot gold was up 0.1% at $2,469.80 per ounce as of 1135 GMT, after hitting an all-time high of $2,482.29 earlier in the session. U.S. gold futures gained 0.3% to $2,474.80.

"It seems like it's evident that the Federal Reserve is going to cut rates in September and that, coupled with the concept of the de-dollarization of how central banks have been buying more gold versus the U.S. Treasury yields, are currently the catalyst that is driving gold to these highs" said Alex Ebkarian, chief operating officer at Allegiance Gold.

Fed Chair Jerome Powell said on Monday recent inflation readings "add somewhat to confidence" that the pace of price increases is returning to the central bank's target in a sustainable fashion.

Fed's Adriana Kugler and John Williams also expressed cautious optimism that inflation is returning to its 2% target.

"We will see some volatility as the market needs to confirm this isn't just a temporary euphoria," said Ebkarian.

Demand from western markets, geopolitical risks, and potential recessionary threats could push gold prices to $2,600-$2,700 in the second half of the year, he added.

Markets see a 98% chance of a U.S. rate cut in September, according to the CME FedWatch Tool. Non-yielding bullion's appeal rises when rates are lower.

"Safe haven demand will support demand for bars and coins, but the higher prices will weigh on jewelry demand," UBS analyst Giovanni Staunovo said.

Meanwhile, silver fell 1.2% to $31.02 per ounce, platinum rose 1.7% to $1,017.25 and palladium added 1.6% to $974.31.

Staunovo noted that risk aversion tends to support the yellow metal and not white metals, which is why gold is outperforming the others.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Varun H K and Krishna Chandra Eluri)