02:00 PM EDT, 08/27/2024 (MT Newswires) -- (Updates prices.)

Gold edged down from a record high early on Tuesday on profit taking and a lower dollar.

Gold for December delivery was last seen down US$1.80 to US$2,553.40 per ounce, a day after the metal closed at a record high $2,555.20 per ounce.

An expected drop in U.S. interest rates is supporting gold futures, as lower rates cut the carrying cost of owning the precious metal, which pays no interest, while raising bond prices. However the timing and size of rate cuts promised by Federal Reserve Chair Jerome Powell remains unclear and depends on economic data ahead of the start of the central bank policy committee's next two-day meeting on Sept.17.

The dollar was lower, with the ICE dollar index last seen down 0.23 points to 100.62.

Treasury yields were mixed, with the U.S. two-year note last seen paying 3.918%, down 2.6 basis points, while the yield on the 10-year note was up 2.0 basis points to 3.838%.