02:00 PM EDT, 10/17/2024 (MT Newswires) -- (Updates prices)

Gold traded at a record high midafternoon on Thursday even as treasury yields and the rose after U.S. retail sales rose more than expected last month,

Gold for December delivery was last seen up US$16.00 to US$2,707.30 per ounce, topping the Sept.26 record close of US$2,694.90.

"Gold holds near record highs, supported by worries about fiscal instability, safe-haven appeal, geopolitical tensions, de-dollarization, uncertainties surrounding the US presidential election, and incoming rate cuts lowering the cost of holding bullion," Saxo Bank noted.

The U.S. Census Bureau on Thursday reported September retail sales rose by 0.4% from August, up from a 0.1% rise a month earlier and ahead of the consensus estimate for a 0.3% gain.

The data is likely to firm expectations the Federal Reserve's policy committee will shy away from another 50 basis point cut to interest rates at its November meeting and cut by 25 points. The CME Fedwatch Tool sees an 83.4% probability the Federal Open Market Committee will opt for the smaller cut and a 16.6% chance it will stand pat on rates.

Treasury yields rose sharply following the retail sales data, with the U.S. two-year note last seen paying 3.993%, up 4.3 basis points, while the yield on the 10-year note was up 8.2 points to 4.1%

The dollar edged higher, with the ICE dollar index last seen up 0.22 points to 103.81.