02:00 PM EDT, 07/30/2024 (MT Newswires) -- (Updates prices.)

Gold moved higher midafternoon on Tuesday as treasury yields eased ahead of the start of the two-day meeting of the Federal Reserve's policy committee that is expected to end with interest rates unchanged.

Gold for December delivery was last seen up US$25.90 to US$2,451.40 per ounce.

The rise comes ahead of the Wednesday afternoon end of the Federal Open Market Committee meeting, which is expected to leave rates at a 23-year high but could confirm market expectations the central bank will begin cutting rates in September.

"Traders, following a succession of weaker US economic data prints, lifted expectations a US rate cutting cycle could begin in September as opposed to a prior focus on December as the starting point. Lower funding costs for holding a position in a non-interest paying metal, such as gold, will increase its attractiveness," Ole Hansen, head of commodity strategy at Saxo Bank, noted.

The dollar eased, with the ICE dollar index last seen down 0.04 points to 104.52.

Treasury yields eased, bullish for gold since it pays no interest. The U.S. two-year note was last seen paying 4.363%, down 4.7 basis points, while the yield on the 10-year note was down 2.9 basis points to 4.15%.