• U.S. Fed minutes due on Wednesday
• Gold hit a record high of $2,449.89 on Monday

May 21 (Reuters) - Gold prices cooled near a record peak hit in the previous session on Tuesday as the dollar held ground, but stayed afloat at the $2,400 level on support from safe-haven interest and prospects of U.S. interest rates easing this year.

Spot gold fell 0.2% to $2,420.49 per ounce by 1756 GMT, as the U.S. dollar index (.DXY) New Tab, opens new tab edged up, making bullion more expensive for other currency holders.

U.S. gold futures settled 0.5% lower to $2,425.90.

As gold scaled a record high of $2,449.89 on Monday, "the general picture has not really changed (since March) ... which is just the backdrop of very attractive global macroeconomic and geopolitical environment for gold," said Nikos Kavalis, managing director at Metals Focus.

Concerns about the rapidly rising U.S. government debt as the Federal Reserve tries to make for a soft landing are drivers for some investors.

Recent data suggested that U.S. inflation resumed its downward trend, however several Fed policymakers remained cautious on cutting rates too soon but ruled out the need for a hike.

Elsewhere in China, where efforts are being made to stabilise its crisis-hit property sector, investors are inclined to invest in safe-haven gold.

China itself, officially, has loaded up bullion in the first quarter of 2024.

"Gold's key role is to offset risk, whether financial, geopolitical or volatility. That is not new, but sentiment has now realised," StoneX analyst Rhona O'Connell said.

Global gold physically-backed gold exchange-traded funds (ETFs) saw net inflows of $1 billion last week - the largest weekly inflow since October 2023, according to the World Gold Council.

"More and more investors, including a lot of mainstream investors, like macro funds and the likes, have missed a part of that rally, and are convinced by the case for gold and therefore want to participate," Kavalis said, adding however that the market is ripe for correction before prices could further move up.

Investors will keep a tab on minutes of the Fed's last policy meeting due on Wednesday.

Silver rose 0.2% to $31.90 after hitting an over 11-year high in the last session. Platinum rose 0.7% to $1,054.00 per ounce and palladium fell 0.1% to $1,025.43 per ounce.

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https://www.reuters.com/markets/commodities/gold-slips-record-levels-dollar-holds-ground-2024-05-21/