02:00 PM EDT, 08/16/2024 (MT Newswires) -- (Updates prices.)

Gold trading at a record high on Friday as the dollar and yields fell on firming expectations the Federal Reserve is ready to begin lowering interest rates as U.S. inflation eases.

Gold for December delivery was last seen up US$45.00 to US$2,537.40 per ounce, topping the record close of US$2,507.80 set on Tuesday.

The rise follows on economic data this week showing inflation slowed last month while retail sales surged, easing recession worries while strengthening expectations the Federal Reserve can begin cutting interest rates, which are at a 23-year high, when its policy committee meets next month.

"Gold's data dependency remains paramount, as jobs, inflation, and economic data all have the potential to clarify the Fed's path and future monetary policy," Christopher Louney, a commodities strategist at RBC Capital Markets, said in a note.

The dollar moved lower, with the ICE dollar index last seen down 0.42 points to 102.56.

Treasury yields also fell, with the U.S. two-year note last seen paying 4.075%, down 2.6 basis points, while the yield on the 10-year note was down 2.1 basis points to 3.894%.