09:38 AM EDT, 04/23/2024 (MT Newswires) -- Gold prices fell again early on Tuesday after dropping by the most in two years a day earlier as geopolitical risks continue to wane and treasury yields rise.

Gold for June delivery was last seen down US$22.60 to US$2,323.80 per ounce after dropping by US$67.40 from a record high on Monday.

The drop comes as investors continue to discount geopolitical risks after tensions between Israel and Iran waned following tit for tat attacks that caused little damage. The dimming hopes for a Federal Reserve rate cut are also trimming support for the metal.

"Having rallied USD 450 since mid-February, the risk of a potential painful correction has been growing, especially following recent dollar and yield strength and 2024 rate cut projections approaching zero," Saxo Bank noted.

The dollar eased early, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.06 points to 106.02.

Treasury yields rose, with the US two-year note last seen up 2 basis points to 4.996%, while the yield on the 10-year note was up 3.1 basis points to 4.645%.