02:00 PM EDT, 09/26/2024 (MT Newswires) -- (Updates prices.)

Gold traded at a fresh record high for the sixth-straight session midafternoon on Thursday, pushing near the US$2,700 mark on falling interest rates, an expected boost to physical demand from India and the threat of a widening Middle East war.

Gold for December delivery was last seen up US$10.30 to US$2,695.00 per ounce.

The price of the precious metal has risen steadily since last week's 50 basis point cut to interest rates by the Federal reserve as lower rates cut the carrying cost of owning gold. However support is also coming from safe-haven buyers on reports Israel is readying an invasion of southern Lebanon as it battles the Iranian-backed Hezbollah militia, threatening to draw Iran into the conflict.

Physical demand for gold is expected to be buoyed by higher demand from India, after the country cut an import tax on the metal to 6% from 15% ahead of the country's wedding and festival season, boosting demand for gold for jewelry and gifts.

"Indian gold demand is expected to be strong due to a reduction in import tax and an anticipated robust festival and wedding season," Saxo Bank noted.

Silver prices have also been on the rise, riding gold's coattails higher. The price of the metal was last seen up US$0.35 to US$32.37 per ounce, the highest since 2012.

The dollar edged lower, with the ICE dollar index last seen down 0.04 points to 100.87.

Treasury yields were mixed after U.S. initial jobless claims rose by 218,000 last week, under expectations for 223,000 new claims, according to Marketwatch. The U.S. two-year note was last seen paying 3.623%, up 6.6 basis points, while the yield on the 10-year note was up 1.1 points at 3.799%.