02:00 PM EDT, 08/21/2024 (MT Newswires) -- (Updates prices.)

Gold prices edged down from a record high mid-afternoon on Wednesday even treasury yields eased ahead of a key speech from Federal Reserve Chair Jerome Powell on Friday that could firm expectations the central bank is ready to begin lowering interest rates.

Gold for December delivery was last seen down US$2.90 to $2,547.70 per ounce, a day after closing at the highest ever.

Powell will deliver the keynote speech at the Fed's annual Jackson Hole, Wyoming, symposium on Friday. His remarks will be closely watched for any confirmation the central bank is ready to start cutting interest rates next month as inflation falls nearer to its 2% target.

"With the market pricing 100bp of the Fed rate cuts in 2024, the USD and bond yield fell to this year's low. A weaker USD and falling yields are crucial for gold investment demand. Traders will be looking for clues about the pace and intensity of rate cuts to build fresh positions," ANZ Bank said in a note.

The dollar fell, with the ICE dollar index last seen down 0.3 points to 101.14.

Treasury yields narrowed, with the U.S. two-year note last seen paying 3.926%, down 6.6 basis points, while the yield on the 10-year note was down 3.6 basis points to 3.774%.