Gold prices hovered near a one-month high on Thursday as signs of inflation stabilizing in the U.S. increased the likelihood of rate cuts by the Federal Reserve as early as September.

Spot gold was little changed at $2,384.07 per ounce as of 1155 GMT, after hitting its highest since April 19 earlier in the session. Bullion rose over 1% on Wednesday.

Meanwhile, U.S. gold futures slipped 0.3% to $2,388.70.

"The combination of stabilizing inflation and softness in other economic data such as retail sales is really a good cocktail for gold and silver," said Ole Hansen, head of commodity strategy at Saxo Bank.

U.S. retail sales were unexpectedly flat last month, while cooling consumer prices and last week's lacklustre labour market data came as good news to Fed policymakers waiting to see renewed progress on inflation before reducing rates.

Lower interest rates boost non-yielding bullion's appeal.

"Gold has been through a period of consolidation, but that consolidation has been very shallow compared to the big rally back in March and it does indicate that there's still underlying strength in the market," Hansen said.

The dollar index hovered near a more than one-month low, while benchmark 10-year Treasury yields were at its lowest since April 5.

Meanwhile, spot silver fell 0.3% to $29.61 per ounce, having hit its highest since February 2021 earlier in the session.

"Strong fundamentals amid rising gold prices are likely to spur investor interest in silver," analysts at ANZ wrote in a note, adding that they expect the metal to trade above $31 by the end of 2024.

Palladium lost 0.3% to $1,007.10, while platinum rose 0.2% to $1,066.30 after hitting a one-year high earlier in the session.

Forecasts of continued deficits and strong auto demand are driving a platinum rally, attracting momentum buyers, Hansen said.

Platinum has gained 7% so far for the week.

(Reporting by Harshit Verma and Sherin Elizabeth Varghese in Bengaluru; Editing by Varun H K and Vijay Kishore)