02:00 PM EDT, 08/22/2024 (MT Newswires) -- (Updates prices.)

Gold fell for a second day early on Thursday, with the metal continuing to fall off Tuesday's record high as the dollar strengthens and treasury yields rise.

Gold for December delivery was last seen down US$30.60 to US$2,516.90 per ounce, under the record US$2,550.60 set two days earlier.

The drop comes even as minutes from the last meeting of the Federal Open Market Committee, the Federal Reserve's policy committee, showed members may be ready to begin cutting rates at their September meeting. Fed Chair Jerome Powell's Friday speech to the central bank's annual Jackson Hole, Wyoming, conference will be closely watched for any confirmation lower interest rates are coming for the world's largest economy.

However the upside for gold from lower interest rates may already be priced in, leaving little room for higher prices for the precious metal.

"The risk of consolidation or even a correction looms, with the price action showing signs of exhaustion following the latest rally to fresh records, not least given yesterday's muted response to weaker US job growth and FOMC minutes almost confirming a September rate cut," Saxo Bank noted.

The dollar rose early, with the ICE dollar index last seen up 0.55 points to 101.59.

Treasury yields were also higher, bearish for gold since it pays no interest. The U.S. two-year note was last seen paying 4.018%, up 7.5 basis points, while the yield on the 10-year note was up 6.4 basis points to 3.869%.