02:00 PM EDT, 04/30/2024 (MT Newswires) -- (Updates prices.)

Gold traded sharply lower midafternoon on Tuesday with the dollar and yields rising as the Federal Reserve's policy committee begins its two-day meeting that is expected to end with interest rates unchanged.

Gold for June delivery was last seen down US$51.50 to US$2,306.20 per ounce.

The Federal Open Market Committee's two-day meeting begins Tuesday with inflation still running above the central bank's 2% target as reports show the economy continues to run hot. The market's focus will be on a dimming outlook for a cut to rates this year because of the still-high inflation readings.

The "focus is on whether (Fed) Chair Powell makes a hawkish pivot," Saxo Bank noted.

The dollar rose, with the ICE dollar index last seen up 0.64 points to 106.21.

Treasury yields were also higher, bearish for gold since it offers no interest. The U.S. two-year note was last seen paying 5.027%, up 4.0 basis points, while the yield on the 10-year note was up 5.0 basis points to 4.667%.