09:24 AM EDT, 03/14/2024 (MT Newswires) -- Gold prices weakened early on Thursday after the dollar and bond yields climbed as yet another US inflation measure ran hotter than expected last month.

Gold for April delivery was last seen down US$11.70 to US$2,169.10 per ounce.

The drop comes after the Bureau of Labor Statistics reported the US Producer Price Index rose 1.6% annualized in February, up from a revised 1% rate in January and well ahead of expectations for a 1.1% rise, while the core rate rose 0.3% from January, ahead of the consensus estimate for a 0.2% rise, according to Marketwatch.

The report is the latest to show US inflation is not quickly returning to the Federal Reserve's 2% target after the Consumer Price Index rose more than expected last month. The data is dashing hopes for speedy rate cuts from the central bank, whose policy committee will meet next week with no change to current rates expected.

The dollar rose following the data, with the ICE dollar index last seen up 0.19 points to 102.98.

Treasury yields also climbed, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.67%, up 2.9 basis points, while the yield on the 10-year note was up 4.9 basis points 4.243%.