02:00 PM EDT, 07/23/2024 (MT Newswires) -- (Updates prices.)

Gold traded higher midafternoon on Tuesday as treasury yields weakened and the dollar rose ahead of fresh U.S. inflation data coming later this week.

Gold for December delivery was last seen up US$10.90 to US$2,453.00 per ounce.

The precious metal is sticking near the record high of US$2,467.80 set July 15 on hopes the Federal Reserve will begin a cycle of cutting interest rates as soon as September. Continuing turmoil in the Middle East and political uncertainty during the U.S. presidential race is also affecting prices.

"Gold remains influenced by various factors, including expectations of US interest rate cuts, central bank purchases, and geopolitical tensions," Saxo Bank noted.

The outlook for U.S. interest rates will be firmed on Friday with the release of the June Personal Consumption Expenditures (PCE) Index, which is expected to show the index rose at a 2.5% annualized rate last month, the consensus estimate according to Marketwatch, down from 2.6% in May.

The dollar rose early, with the ICE dollar index last seen up 0.13 points to 104.45, while treasury yields weakened. The U.S. two-year note was last seen paying 4.496%, down 3.0 basis points while the yield on the 10-year note was down 2.0 points to 4.236%