02:00 PM EDT, 08/20/2024 (MT Newswires) -- (Updates prices.)

Gold traded at a record high midafternoon on Tuesday as the dollar and treasury yields moved lower on expectations the Federal Reserve is ready to begin cutting interest rates at next month's meeting of its policy committee.

Gold for December delivery was last seen up US$8.80 to US$2,550.10 per ounce, setting a record high for the third-straight day.

The metal is benefiting from expectations the Federal Open Market Committee will begin a rate-cutting cycle when it next meets on Sept. 17 and 18. The market is awaiting a Friday speech from Federal Reserve Chair Jerome Powell at the central bank's annual symposium in Jackson Hole, Wyoming, for confirmation the Fed is turning dovish as inflation falls nearer to its 2% target.

"Gold remains in record-setting form ahead of Powell's Jackson Hole speech on Friday," Saxo Bank noted. "This is despite reports of a potential Gaza cease-fire and fading appetite for gold in China after record prices helped drive a 24% drop in imports last month to a two-year low."

The dollar continued to weaken early on Tuesday, with the ICE dollar index last seen down 0.4 points to 101.48, the lowest since Dec.29.

Treasury yields also narrowed, bullish for gold since it pays no interest. The U.S. two-year note was last seen paying 4.013%, down 3.6 basis points, while the yield on the 10-year note was down 4.8 basis points to 3.828%.