09:29 AM EST, 02/21/2025 (MT Newswires) -- Gold prices fell off a record high early on Friday as the dollar rose off the lowest in more than two months and traders take profits.

Gold for April delivery was last seen down US$13.90 to US$2,942.20 per ounce after closing at a record US$2,956.10 on Thursday.

The drop comes as the dollar rose off the lowest since Dec.9, with the ICE dollar index last seen up 0.25 points to 106.62. A higher dollar is bearish for commodities priced in the currency.

A decision from new U.S. Treasury Secretary Scott Bessent to keep U.S. gold reserves valued at US$42.22 per ounce, a price set in 1973, is also pressuring gold. The decision keeps the nominal value of the reserve at US$6 billion rather than its current market value of US$434 billion, according to Forbes.

"Gold shows sign of consolidating, and despite the biggest weekly inflows to ETFs since 2023, prices softened after US Treasury Secretary Scott Bessent's dismissed speculation of a government revaluation of its gold holdings," Saxo Bank noted.

Treasury yields edged down early, with the yield on the U.S. two-year note last seen down 0.8 basis points to 4.277%, while the 10-year note was paying 4.497%, down 1.3 points.