09:25 AM EDT, 08/15/2024 (MT Newswires) -- Gold prices fell early on Thursday as the dollar and treasury yields surged following a report showing U.S. retail sales rose more than expected last month.

Gold for December delivery was last seen down US$6.20 to US$2,473.50 per ounce.

The U.S. Census Bureau reported retail sales in July rose 1% from June, well above expectations for a rise of 0.3% according to Marketwatch and rebounding from a drop of 0.2% a month earlier. The data showed the U.S. economy continues to run hot, even as a Wednesday report showed consumer prices fell to a three-year low last month, firming expectations the Federal Reserve is ready to begin cutting interest rates.

The dollar surged following the data, with the ICE dollar index was last seen up 0.6 points to 103.17, rising off overnight lows of 102.54, the lowest since Jan.15.

Treasury yields were also sharply higher, bearish for gold since it offers no interest. The U.S. two-year note was last seen paying 4.118%, up 15.0 basis points, while the yield on the 10-year note was up 10.6 basis points to 3.946%.