09:16 AM EDT, 06/18/2024 (MT Newswires) -- Gold prices rose early on Tuesday after treasury yields fell and the dollar dropped off overnight highs as U.S. retail sales rose less than expected last month.

Gold for August delivery was last seen up US$6.40 to US$2,335.40 per ounce.

The U.S. Census Bureau reported retail sales rose by 0.1% month over month in May, up from a revised drop of 0.2% in April but below expectations for 0.2% rise, according to Marketwatch. Excluding autos, sales fell by 0.1%, after rising 0.2% a month earlier and under expectations for a 0.2% rise.

The dollar moved down following the data but remained above Monday's close, with the ICE dollar index last seen up 0.05 points to 105.37, but down from an overnight high of 105.56 prior to the retail report.

Treasury yields narrowed, lowering the carrying cost of owning gold. The U.S. two-year note was last seen paying 4.718%, down 5.6 basis points, while the yield on the 10-year note was down 3.6 basis points to 4.25%.