02:00 PM EDT, 09/24/2025 (MT Newswires) -- (Updates prices.)

Gold fell off a record high midafternoon Wednesday as investors take profits after the precious metal rose above the US$3,800 mark a day earlier while the dollar moved higher on a clouded outlook for U.S. interest rate cuts.

Gold for December delivery was last seen down $48.80 to $3,767.30 per ounce, after closing at the highest ever a day earlier.

The price of the metal has climbed 12% over the past month, pushed up by last week's 25 basis point cut to U.S. interest rates by the Federal Reserve and expectations further cuts are coming from the central bank before year end. Safe-haven buying amid capricious U.S. policies and continuing geopolitical risk amid Russia's war on Ukraine and violence in the Middle East is also offering support.

"The rally is being fueled by lower U.S. funding costs alongside a cocktail of investor concerns spanning overvalued equities, Fed independence, and mounting geopolitical risks," Saxo Bank noted.

The dollar was sharply higher after Fed chair Jerome Powell Tuesday warned inflation remains a concern as it continues to run above the central bank's 2% target, clouding the outlook for rate cuts.

"If we ease too aggressively, we could leave the inflation job unfinished and need to reverse course later to fully restore 2 percent inflation," Powell said in a speech to a Rhode Island business group.

The ICE dollar index was last seen up 0.61 points to 97.86. Treasury yields were also higher, with the U.S. two-year note last seen paying 3.6%, up 3.4 basis points, while the yield on the 10-year was up 3.3 points to 4.14%.