09:44 AM EDT, 04/16/2024 (MT Newswires) -- Gold prices rose early on Tuesday as buying momentum for the metal continues even as treasury yields rise and the dollar appreciates.

Gold for June delivery was last seen up US$6.80 to US$2,389.80 per ounce as it again pushes toward the US$2,400 mark.

The rise comes after the United States reported housing starts plunged 12% in March, to an annualized rate of 1.022-million new units last month, well below the 1.52-million annualized rate in February and below the consensus estimate for 1.48-million starts, according to Marketwatch.

The weaker-than-expected result runs counter to a series of strong US economic reports, including Monday's retail sales data, which showed a rise of 0.7% in March from February, above the consensus estimate for a 0.3% increase. The housing starts report could boost investors' hopes for interest-rate cuts from the Federal Reserve that have been dimmed by the strong data.

The dollar was steady early, with the ICE dollar index was last seen up 0.01 points to 106.22.

Treasury yields rose, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.981%, up 5.2 basis points, while the yield on the 10-year note was up 7.5 basis points to 4.683%.