Gold prices retreated from a record high of $2,670 an ounce as U.S. Treasury yields climbed and the dollar strengthened, but still held at $2,650 an ounce. Gold momentum remains bullish.

The yield on the 10-year U.S. Treasury bond rose 4.5 basis points to 3.775%. Meanwhile, the U.S. dollar index (DXY), which tracks the value of the dollar against six other currencies, rebounded from a 14-month low, rising 0.54% to 100.88.

Expectations of another sharp interest rate cut by the Federal Reserve still provide support for gold. Traders believe that there is a 60% chance that the Federal Reserve will cut interest rates by 50 basis points in November.

Since gold does not generate interest, lower interest rates will enhance its investment appeal.