02:00 PM EDT, 07/29/2024 (MT Newswires) -- (Updates prices.)

Gold traded lower midafternoon on Monday as the dollar strengthened ahead of this week's meeting of the Federal Reserve's policy committee.

Gold for December delivery was last seen down US$2.00 to US$2,425.90 per ounce.

The rise comes ahead of the Wednesday end of the Federal Open Market Committee's two-day meeting. The committee is expected leave interest rates unchanged at a 23-year high, but the group's dot plot, which is expected to show rate cuts coming as soon a September, will be closely watched.

Geopolitical tensions are also offering support for gold. as Israel and the Iran-backed Hezbollah militant group in Lebanon expand attacks on each other and U.S. elections near.

"Rising rate cut expectations and multiple geopolitical concerns, including the US election, continues to underpin gold which trades higher on the month, albeit well below the recent record high," Saxo Bank noted.

The dollar moved higher, with the ICE dollar index last seen up 0.24 points to 104.55.

Treasury yields were mixed, with the U.S. two-year note last seen paying 4.389%, up 0.4 basis points, while the yield on the 10-year note was down 1.7 basis points to 4.183%.