09:21 AM EST, 01/13/2025 (MT Newswires) -- Gold traded lower early on Monday as the dollar rose to the highest in more than two years.

Gold for February delivery was last seen down US$32.50 to US$2,682.50 per ounce.

The drop follows on three days of gains that pushed prices to the highest in a month, despite a strengthening dollar, which continues to rally following the November U.S. election as the Federal Reserve is expected to slow the pace of interest-rate cuts.

"Gold is trading near USD 2,700, maintaining strong demand despite the headwinds of a robust dollar and rising yields. The latter has fueled a growing risk-off sentiment in markets amid concerns over financial stability and heightened volatility ahead of Trump's return to the White House," Saxo Bank noted.

The ICE dollar index was last seen up 0.28 points to 109.93, after earlier touching 110.18, the highest since October, 2022.

Treasury yields edged higher, with the U.S. two-year note last seen paying 4.396%, up 0.8 basis points, while the 10-year note was paying 4.77%, up 0.1 basis points.