02:01 PM EDT, 10/22/2024 (MT Newswires) -- (Updates prices.)

Gold traded to a fresh record high for the fourth-straight session midafternoon on Tuesday as yields slipped following strong day-prior gains after Federal Reserve officials cautioned the pace of interest-rate cuts may be slower than expected.

Gold for December delivery was last seen up US$20.50 to US$2,759.40 per ounce.

The price of the metal is surging on anticipation of lower interest rates and safe-haven buying ahead of the U.S. election. The rally in precious metals continued even as the dollar and yields surged on Monday after Fed officials, including members of its policy committee, said the central bank will take a cautious approach to rate cuts.

"The rally in precious metals continues to puzzle, with gold and silver hitting new highs despite (Monday's) 11-basis point rise in 10-year Treasury yields and a stronger USD as traders adjust to fewer US rate cuts. However, these non-gold friendly developments are being offset by haven bids and the 'risk' of a Republican win in the upcoming elections, stoking concerns about looser fiscal policy, which may deepen the deficit and rekindle inflation," Saxo Bank noted.

The dollar edged higher, with the ICE dollar index last seen up 0.04 points to 104.05.

Treasury yields also eased, with the U.S. two-year note last seen paying 4.039%, down 0.03 basis points, while the yield on the 10-year note was down 0.4 basis points to 4.202%.