09:35 AM EDT, 07/18/2024 (MT Newswires) -- Gold pushed back to a record high early on Thursday as expectations for lower U.S. interest rates offset rising treasury yields and a rebounding dollar.

Gold for August delivery was last seen up US$9.20 to US$2,469.10 per ounce, ahead of the US$2,467.80 record close set two days earlier.

The rise comes as expectations for a September cut to U.S. interest rates firm in light of slowing and a weakening labor market. Initial jobless claims last week rose to 243,000, up from 222.000 a week earlier and ahead of the consensus estimate for 229,000 new applications, according to Marketwatch.

Gold's rise is "driven by bets on earlier and deeper Fed rate cuts due to signs of cooling inflation", Saxo Bank noted.

Treasury yields moved higher, normally a bearish sign for gold. The U.S. two-year note was last seen paying 4.461%, up 1.5 basis points, while the yield on the 10-year note was up 3.0 basis points to 4.191%.

The dollar is also higher, rising off a four-month low touched on Wednesday. The ICE dollar index was last seen up 0.13 points to 103.86.