09:35 AM EDT, 05/10/2024 (MT Newswires) -- Gold traded higher for a second day on Friday, regaining ground lost to a price correction after the precious metal set a record high last month.

Gold for June delivery was last seen up US$28.60 per ounce to US$2,368.90 per ounce, still below the April 19 record of US$2,413.40 but recovering from the month low of US$2,302.90 on April 30.

The rise comes on hopes the Federal Reserve will begin cutting interest rates this year, lowering the carrying cost of owning gold. Higher than expected US initial jobless-claims data released Thursday raised hopes the central bank will soon be able to turn dovish, though inflation has yet to return to its 2% target.

"Gold prices continue to fluctuate at elevated levels as the market prices in and out the chances, timing, and extent of rate cuts this year," Christopher Louney, a commodities strategist at RBC Capital Markets, said in a note. Thursday's "jobless claims have put gold on the offensive, moving higher as the conviction for rate cuts this year got some momentum. We still urge caution with other data coming and many pointing to the idea that rates will likely need to stay at their high longer than previously thought."

The dollar edged higher early, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.08 points to 105.3.

However treasury yields also rose, bearish for gold since it offers no interest. The U.S. two-year note was last seen paying 4.844%, up 1.8 basis points, while the yield on the 10-year note was up 2.7 basis points to 4.487%