Gold prices stabilized in Asian trade on Wednesday after reaching record highs earlier this week, driven by the prospect of lower U.S. interest rates, which weakened the dollar and boosted demand for the yellow metal.

- Broader metal prices also advanced, benefiting from a softer dollar and declining Treasury yields, although their gains slowed amid a broader risk-off move in markets.

- Spot gold rose 0.1% to $2,515.44 an ounce, while gold futures expiring in December increased by 0.1% to $2,553.35 an ounce. Spot prices hit a record high of $2,531.72 an ounce on Tuesday.

- Gold and broader metal prices were mainly supported by persistent expectations that the Federal Reserve will begin cutting interest rates in September.

- Traders were divided between a 25 or 50 basis point reduction, according to CME FedWatch.

- This week's focus is on an address by Fed Chair Jerome Powell at the Jackson Hole Symposium on Friday, where he is expected to reinforce the Fed’s dovish stance. However, analysts do not expect Powell to explicitly predict any potential rate cuts.

- The minutes of the Fed’s late-July meeting are also due later in the day after the central bank struck a dovish tone during the meeting.

- The prospect of lower rates is favorable for gold, as it reduces the opportunity cost of investing in non-yielding assets.

- This expectation, along with the recent weakness in the dollar, has been a key driver of gains in metal markets. However, much of this buying was focused on gold, while other precious metals saw marginal gains.

- Platinum futures fell 0.1% to $956.25 an ounce, while silver futures rose 0.1% to $29.538 an ounce.

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