09:28 AM EDT, 09/10/2024 (MT Newswires) -- Gold traded higher for a second day early on Tuesday with the dollar and treasury yields little changed ahead of an expected cut to U.S. interest rates next week.

Gold for December delivery was last seen up US$9.40 to US$2,542.10 per ounce.

The rise comes as the Federal Reserve's policy committee readies to meet next week. The Federal Open Market Committee is expected to begin cutting interest rates from their current 23-year high when the two-day meeting ends next Wednesday. However the size of the cut is still up for debate, with some calls for a 50 basis point cut, though the CME Fedwatch tool sees a 73% probability for a 25 point cut.

Only one major economic release is expected prior to the Fed's decision, with tomorrow's release of the August Consumer Price Index, which is expected to show inflation eased to a 2.6% annualized rate, according to Marketwatch, down from 2.9% in July.

The dollar edged higher, with the ICE dollar index last seen up 0.07 points to 101.62.

Treasury yields were slightly lower, with the U.S. two-year note last seen paying 3.671%, down 0.6 basis points, while the yield on the 10-year note was also down 0.6 basis points to 3.698%.