Gold prices edged higher on Thursday, as expectations of a September interest rate cut from the U.S. Federal Reserve continue to gather momentum.

Spot gold was down 0.21% at $2,453.23 per ounce. It hit an all-time high of $2,483.60 on Wednesday. U.S. gold futures fell 0.1% to $2,457.00.

"Analysts foresee long-term gains for the precious metal, driven by the Federal Reserve's preparations to cut rates, believing inflation is under control," said Russell Shor, senior market specialist at Tradu.

Geopolitical instability and central bank demand are also creating a positive medium to long-term outlook for gold, Shor said.

Markets are pricing in a 100% chance of a U.S. cut rate in September, according to the CME FedWatch Tool. Non-yielding bullion's appeal tends to shine in a low-interest-rate environment.

The number of Americans filing new applications for unemployment benefits rose more than expected last week, but there has been no material shift in the labor market, according to data released by the Labor Department on Thursday.

Spot silver fell 0.12% to $29.93 per ounce, platinum fell about 2.1% to $986.90 and palladium lost 3.2% to $924.

Source : Reuters