02:00 PM EDT, 10/07/2024 (MT Newswires) -- (Updates prices.)

Gold prices edged lower midafternoon on Monday, falling for a second day as Friday's robust U.S. employment report cut expectations for another outsized cut to U.S. interest rates.

Gold for December delivery was last seen down US$2.10 to US$2.655.70 per ounce.

The precious metal rose to a record US$2.694.90 per ounce on Sept.26 after the Federal Reserve made its first cut to interest rates in four years, lowering its policy rate by 50 basis points. Expectations for another big cut to rates that would lower the carrying cost of owning gold dissipated after the U.S. reported it added 254,000 new jobs last month, well above expectations for a rise of 150,000.

According to the CME Fedwatch tool, the probability of another 50-point cut at the Nov.7 meeting of the Fed's policy group stands at 0%, down from 35% a week ago.

The dollar edged down early, with the ICE dollar index last seen down 0.13 points to 102.39.

Treasury yields were The U.S two-year note was last seen paying 3.981%, up 5.3 basis points, while the yield on the 10-year note was up 5.5 points to 4.018%