02:00 PM EDT, 06/11/2024 (MT Newswires) -- (Updates prices.)

Gold was mostly steady midafternoon on Tuesday even as the dollar rose and yields fell as the Federal Reserve's policy committee begins a two-day meeting widely expected to end with no change to interest rates.

Gold for August delivery was last seen up US$1.70 to US$2,328.70 per ounce.

The price of the precious metal is holding under the US$2,400 mark it last topped on May 22 as expectations for a near-term cut to U.S. interest rates dim. That outlook is not expected to change with the release of the May Consumer Price Index on Wednesday. The data is expected to show inflation unchanged from April at a 3.4% annualized rate, the consensus estimate according to Marketwatch, while the core rate, which excludes volatile items, is expected to fall to 3.5% annualized from 3.6% a month earlier.

The Federal Open Market Committee will end its two-day meeting Wednesday afternoon and is widely expected to leave interest rates unchanged at the highest since 2001, despite last week's rate cuts by central banks in Europe and Canada.

The dollar strengthened ahead of the rate decision, with the ICE dollar index last seen up 0.17 points to 105.32.

Treasury yields fell, bullish for gold since it pays no interest. The yield on the US two-year note was last seen down 3.8 basis points to 4.851%, while the 10-year note was paying 4.424%, down 4.2 basis points.