02:00 PM EST, 12/09/2025 (MT Newswires) -- (Updates prices.)

Gold prices rose midafternoon on Tuesday following two-days of losses as the Federal Reserve's policy committee begins its two-day meeting expected to end with a cut to interest rates,

Gold for February delivery was last seen up US$18.70 to US$4,234.90 per ounce.

The price of the metal has edged up 2.3% over the past month, recovering from a correction after rising to a record US$4,359.40 on Oct. 20. The metal is supported by expectations the Federal Open Market Committee will announce an interest-rate cut tomorrow, lowering the carrying cost of owning the metal since it pays no interest. However the market's reaction to a rate-cut announcement is uncertain.

"Precious metals trade slightly softer ahead of tomorrow's FOMC rate decision, as the market weighs the impact of a potentially hawkish cut on high-demand metals. A combination of rising long-end yields, a steeper curve and a softer dollar adds another layer of complexity for positioning in gold," Saxo Bank wrote.

The dollar was higher early, with the ICE dollar index last seen up 0.2 points to 99.29. Treasury yields were higher, with the U.S. two-year note last seen paying 3.617%, up 3.6 basis points, while the yield on the 10-year note was up 1.8 points to 4.185%.