09:16 AM EDT, 06/21/2024 (MT Newswires) -- Gold traded higher early on Friday, rising for a third-straight session as treasury yields narrowed, offsetting a dollar that is trading at a seven-week high.

Gold for August delivery was last seen up US$10.70 to US$2,379.70 per ounce.

The price of the metal has climbed 22% over the past 12 months and last month touched a record US$2,461.70 on expectations the Federal Reserve will move to cut interest rates. Those cuts have yet to materialize as the central bank looks for some signs that inflation is tracking down to its 2% target rate. Most observers expect only one rate cut this year. Still, any data showing a slowing U.S. economy supports the precious metal on hopes the central bank will be spurred to speed cuts.

"Corners of the market are still expecting more than one rate cut this year and view economic data releases as reasons and

opportunities to buy into gold. We remain cautious on gold, especially in the short term, expecting better opportunities as

vulnerabilities are realized," Christopher Louney, a commodities strategist at RBC Capital Markets, noted.

Treasury yields narrowed, lowering the carrying cost of owning gold. The U.S. two-year note was last seen paying 4.704%, down 4.6 basis points, while the yield on the 10-year note was down 3.6 basis points to 4.228%.

The dollar rose early, with the ICE dollar index last seen up 0.17 to 105.75, the highest since May 1.