09:18 AM EDT, 03/22/2024 (MT Newswires) -- Gold prices fell off a record high early on Friday as the dollar rose to a month high.

Gold for June delivery was last seen down US$8.90 to US$2,197.60 per ounce, a day after closing above the US$2,000 mark for the first time.

The price of the metal is being buoyed by expectations lower interest rates are on the way after the Federal Reserve this week forecast rate cuts of 75 basis points this year, even as it left its benchmark rate at a 23-year high.

"The expectation of central banks starting to cut policy rates later this year will continue to underpin gold," Saxo Bank noted.

The ICE dollar index was last seen up 0.83 points to 104.26, the highest since Feb.18, making gold more expensive for international buyers.

Treasury yields narrowed, bullish for gold since it pays no interest. The yield on the US two-year note was last seen down 3.3 basis points to 4.61%, while the 10-year note was paying 4.213%. down 5.1 basis points.