Gold traded in a narrow range on Thursday, holding below the latest touched record peaks as investors’ appetite for the greenback soared ahead further hints for the interest rate trajectory.

The safe haven demand for gold waned on projections of possible ceasfire between Israel and Hamas, especially because it now seemed that the United States was trying harder to mediate a settlement. According to reports, the Biden Administration halted military sales to Israel due to the latter's assaults on Rafah.

However, the major headwind on the yellow metal lingered, as projections hovered around an extended period of peaked interest rate especially in light of multiple Fed officials' warnings about this possibility.

Spot gold edged up by 0.2% to $2,313.51 per ounce, while gold futures slumped by 0.1% to $2,320.60 per ounce.

While markets still have bolstered hope of rate cuts by September, attention is squared now on more hints from Fed officials on Thursday and Friday.