02:00 PM EDT, 06/10/2024 (MT Newswires) -- (Updates prices.)

Gold by midafternoon moved up from a five-week low touched earlier on Monday even as the dollar rose ahead of the Tuesday start of the two-day Federal Reserve meeting that is expected to end with interest rates unchanged, even as central banks in Canada and Europe last week cut rates.

Gold for August delivery was last seen up US$3.80 to US$2,328.80 per ounce.

The Federal Open Market Committee is expected to end its meeting on Wednesday leaving interest rates unchanged as inflation remains above the central bank's 2% target, while the U.S. employment report released Friday showed a surge in new jobs and wages last month as the economy continues to run hot.

The strength of the U.S. economy continues to push out the expected timing of the Fed's first rate cut, despite Europe and Canada last week cutting their benchmark rates by 25 basis points. The CME Fedwatch tool now sees the central bank likely to begin rate cuts at its November meeting. Prior to Friday's jobs report it expected the cuts to begin in September.

The ICE dollar index was last seen up 0.28 points to 105.16.

Treasury yields were mixed. The U.S. two-year note was last seen paying 4.895%, down 0.2 basis points, while the yield on the 10-year note was up 3.7 basis points to 4.477%.