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Gold fell on Wednesday as investors booked profits after hitting a record high in the previous session, while markets weighed U.S. Federal Reserve Chair Jerome Powell's cautious remarks on potential interest rate cuts.

Spot gold slipped 0.3% at $3,753.22 per ounce, as of 0224 GMT. Bullion hit a record high of $3,790.82 on Tuesday.

U.S. gold futures for December delivery fell 0.8% to $3,785.90.

Powell said on Tuesday the central bank needed to continue balancing the competing risks of high inflation and a weakening job market in coming rate decisions, even as his colleagues staked out arguments on both sides of the policy divide.

Gold is currently being influenced by overbought technical indicators leading to profit-taking and the Powell's balanced speech, which lacked clear hints on future rate hikes, OANDA senior market analyst Kelvin Wong said.

Gold's relative strength index (RSI) stood at 78, indicating that the metal was overbought.

"We may see a minor dip in gold prices today. However, both medium-term and short-term trends continue to support a bullish outlook," Wong said.

The U.S. weekly initial jobless claims report is due on Thursday, followed by the Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday.

"If Friday's data indicates inflation is rising more than policymakers might prefer, possibly due to tariffs, it could exert downward pressure on gold," said Capital.com analyst Kyle Rodda.

Markets anticipate two more 25-basis-point rate cuts this year, with a 93% probability in October and a 77% probability in December, according to the CME FedWatch tool.

Meanwhile, NATO warned Russia on Tuesday that it would use "all necessary military and non-military tools" to defend itself, as U.S. President Donald Trump shifted rhetoric by asserting Ukraine could recover all territory occupied by Russia.

Spot silver lost 0.7% at $43.72 per ounce, platinum fell 0.2% to $1,475.78 and palladium edged down 0.1% to $1,218.54.