Gold prices were trading below record peak levels on Wednesday following a surge driven by Western fund inflows and U.S. rate-cut expectations, as investors awaited the minutes of the Federal Reserve's latest meeting for clarity on the extent of cuts.

Spot gold was up 0.1% at $2,517.38 per ounce, as of 0238 GMT, after reaching an all-time high of $2,531.60 on Tuesday. U.S. gold futures rose 0.2% to $2,555.20.

Gold has increased by approximately $460, or 22%, so far this year, with geopolitical tensions and uncertainty surrounding the upcoming U.S. Presidential elections and potential rate cuts expected to drive the precious metal to even higher levels.

"Gold's impressive rally reflects markets anticipating substantial Fed cuts," said OCBC FX strategist Christopher Wong.

Traders have fully priced in a rate cut at the Fed's September meeting, with a 68% probability of a 25 basis points cut, according to the CME FedWatch tool.

The dollar dropped to its lowest level this year against the euro, while benchmark 10-year Treasury yields also fell, making non-yielding bullion more attractive for holders of other currencies.

Traders now anticipate the minutes from the Fed's July policy meeting, expected later today, and Fed Chair Jerome Powell's speech on the U.S. economic outlook this Friday at Jackson Hole.

"Given that markets have already anticipated significant cuts to some degree, Powell faces high expectations to exceed dovish market expectations. A minor reality check might be enough to trigger a short-term gold price pullback," Wong added.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, reported a 0.20% decrease in its holdings on Tuesday from seven-month highs.

Spot silver rose 0.4% to $29.52 per ounce, platinum climbed 0.5% to $953.35, and palladium increased by 0.4% to $929.27.