Gold for April delivery edged up 20 cents at $926.50 an ounce on Nymex

"Bullion appears to be struggling to maintain momentum and traders now talk about the gold rally running out of steam," said analysts at Action Economics.

On Wednesday, gold futures hit a new high of $942.20 an ounce after the Federal Reserve cut the fed funds rate by 50 basis points to 3.0%, meeting market expectations.

"Today could prove to be pivotal for gold's near-term direction as a failure to extend above its record high could trigger a stale selling correction back to $895," said James Moore, metals analyst at TheBullionDesk.com, in a research note.

The dollar traded mixed, losing ground against the euro and the British pound, but gaining against the Japanese yen. See Currencies.

In economic news, first-time jobless claims rocketed higher last week. Initial claims rose 69,000 to 375,000 in the week ended Jan. 26, the Labor Department reported. This is the highest level since early October and the biggest gain since September 2005 in the wake of Hurricane Katrina. See Economic Report.

Separately, the Commerce Department reported that real consumer spending, adjusted for inflation, was unchanged in December following a 0.4% gain in November, further evidence that the economy was getting weaker as the fourth quarter sputtered to an end. Read more.

Also on Nymex, March silver gained 8 cents at $16.840 an ounce, April platinum soared $51.60 at $1,739 an ounce, while March palladium dropped 80 cents at $390 an ounce.

March copper rose 2.85 cents at $3.2550 a pound.

Gold warehouse inventories rose by 89,800 troy ounces to stand at 7.5 million troy ounces as of late Wednesday, according to Nymex data. Silver stockpiles rose to 135.9 million troy ounces, up 226,502 troy ounces, while copper supplies were unchanged at 13,978 short tons.