09:16 AM EDT, 05/17/2024 (MT Newswires) -- Gold traded higher early on Friday despite gains for the dollar and yields, as the precious metal continues to look to retest the US$2,400 mark it last touched a month ago and has failed to top since.

Gold for June delivery was last seen up US$11.00 to US$2,396.50 per ounce.

The precious metal has firmed below the U$2,400 mark since touching a record close of US$2,413.80 on April 19 as the outlook for the potential stimulus of US interest-rate cuts waxes and wanes on economic data and comments from Federal Reserve governors.

"Still-healthy labor and growth as well as lingering inflationary trends underpin our ongoing urge for caution, citing vulnerability for gold at record levels. If price pressures become entrenched and labor markets remain strong, the Fed rate cut narrative that has set the backdrop for gold's gains becomes less clear," Christopher Louney, a commodities strategist at RBC Capital Markets, wrote.

The dollar rose early, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.26 points to 104.73.

Treasury yields also moved up. The US two-year note was last seen paying 4.81%, up 0.4 basis points, while the yield on the 10-year note was up 2.2 basis points to 4.404%.