* Fed minutes of May policy meeting due at 1800 GMT

* Analyst says silver price is more momentum driven

* Bullion hit a record high of $2449.89 on Monday

May 22 (Reuters) - Gold prices were steady and hovered above key $2,400 level on Wednesday, while investors await minutes from the Federal Reserve's latest policy meeting for fresh signals on the timing of U.S. interest rate cuts.

Spot gold held its ground at $2,415.35 per ounce, as of 0345 GMT. Bullion hit a record high of $2,449.89 on Monday.

U.S. gold futures were down 0.3% at $2,419.00.

One of the "factors supporting gold is fiat currency debasement undertaken by the U.S. and the developed nations due to the rising budget deficits," said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.

"There's a potential that stimulus fiscal policy will play a higher role in stimulating these countries, and if this takes shape, the confidence of the individual country currency will be eroded."

Minutes of the Fed's May policy meeting is due at 1800 GMT. Traders are currently pricing a 64% chance of a rate cut by September.

Recent data suggested that U.S. inflation resumed its downward trend, but Fed policymakers said on Tuesday the U.S. central bank should wait several more months to ensure that inflation really is back on track to its 2% target before cutting interest rates.

Lower interest rates and geopolitical uncertainty make bullion a favourable investment.

Gold has been solidifying above the $2,400 level ahead of a potentially looser interest rate environment later in the year, but for it to hit record highs, a pullback in the dollar or bond yields, or an increase in safe-haven demand may be required, said Tim Waterer, chief market analyst at KCM Trade.

Spot silver fell 0.8% to $31.71 after hitting an over 11-year high on Monday.

"Silver price is more momentum driven and the break out of major resistance level is more of a catch up play given resilient gold prices," Wong said.

Platinum edged 0.1% higher to $1,047.76 and palladium dropped 0.7% to $1,018.85.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Sherry Jacob-Phillips)