02:00 PM EDT, 10/08/2024 (MT Newswires) -- (Updates prices.)

Gold prices fell midafternoon on Tuesday, moving lower for a third-straight session even as treasury yields narrowed.

Gold for December delivery was last seen down US$30.80 to US$2,635.10 per ounce.

Despite the decline, the price of the metal continues to trade near the Sept. 26 record high of US$2,694.90 as further interest rate cuts expected from the Federal Reserve offer support by cutting the carrying cost of owning gold.

Safe-haven buying may be limiting the decline as Israel expands its war in Lebanon. Israel is expected to retaliate against Iran's Oct.1 missile attack with a strike of its own against the Persian Gulf country.

The dollar edged lower, with the ICE dollar index last seen unchanged at 102.54.

Treasury yields fell. The U.S. two-year note was last seen paying 3.973%, down 3.1 basis points, while the yield on the 10-year note down 0.1 points to 4.032%.