09:38 AM EDT, 09/19/2024 (MT Newswires) -- Gold prices edged higher early on Thursday, a day after the Federal Reserve cut interest rates for the first time in four years.

The dollar also rose after a report showed fewer than expected initial jobless claims last week.

Gold for December delivery was last seen up US$4.20 to US$2,602.80 per ounce.

The precious metal is sticking close to Monday's record high following the 50 basis point cut to rates on Wednesday by the Federal Reserve's policy committee. The Fed also signaled it expects to cut rates by a a further 50 points by year end, a slower pace than some expected.

"Overall, the market was ripe for consolidation, having rallied strongly ahead of the meeting, but the prospect of lower funding costs in the coming months will likely provide an additional layer of support," Saxo Bank noted.

The U.S. Labor Department reported 219,000 initial jobless claims last week, under the consensus estimate for 229,000 claims, according to Marketwatch, easing some concerns over the health of the U.S. labor market.

The dollar rose following the data, with the ICE dollar index last seen up 0.3 points to 100.89.

Treasury yields were mixed, with the U.S. two-year note last seen paying 3.625%, down 0.03 basis points, while the yield on the 10-year note was up 4.0 basis points to 3.745%.