02:00 PM EST, 01/07/2025 (MT Newswires) -- (Updates prices.)

Gold is trading higher mid-afternoon on Tuesday following two losing sessions even as the dollar and treasury yields rise.

Gold for February delivery was last seen up US$16.50 to US$2,663.90 per ounce.

After rising 27% in 2024 on declining interest rates and physical demand from central banks and funds, the price of the metal has cooled after the Federal Reserve said it will slow interest-rate cuts this year and the dollar surged following the U.S. election.

"Uncertainty regarding the near-term trajectory of US short-term rates and a surging dollar, which rose 7% during Q4-2024, are likely to create a bumpy and volatile path towards our USD 3000 target (for gold)," Saxo Bank noted.

The dollar rose off early losses, with the ICE dollar index last seen up 0.27 points to 108.53.

Treasury yields rose, with the U.S. two-year note last seen paying 4.308%, up 2.3 basis points, while the yield on the 10-year note was up 5.7 points to 4.694%.