09:15 AM EST, 02/14/2025 (MT Newswires) -- Gold edged down from a record early on Friday even as the dollar and treasury yields fell after U.S. retail sales dropped more than expected last month, showing a slowing economy even as inflation continues to run hot.

Gold for April delivery was last seen down US$2.70 to US$2,942.70 per ounce, falling off Thursday's record high.

The U.S. Census Bureau on Friday reported January retail sales fell by 0.9% from December, down from a prior month rise of 0.7% and under the FactSet consensus estimate for a drop of 0.5%.

The weak data follows on this week's release of consumer and wholesale price reports, which said inflation continues to run well above the Federal Reserve's 2% target, lowering hopes for further interest-rate cuts this year.

The dollar was sharply lower following the report, bullish for commodities priced in the currency. The ICE dollar index was last seen down 0.57 points to 106.74, the lowest since Dec.11.

Treasury yields also fell, with the U.S. two-year note last seen paying 4.265%, down 5.6 basis points, while the yield on the 10-year note was down 6.5 points to 4.471%.