09:23 AM EDT, 05/13/2024 (MT Newswires) -- Gold traded lower early on Monday even as the dollar and yields dipped, as the price of the metal fluctuates amid a correction after setting a record high last month.

Gold for June delivery was last seen down US$20.90 to US$2,354.10 per ounce.

The drop comes even as the dollar and treasury yields weakened ahead of US inflation data coming this week. The United States will release its April producer price index on Tuesday, with the core rate expected to rise of 0.2% from March, according to Marketwatch. The March consumer price index comes a day later, with the core rate expected to ease to 3.6% annualized from 3.8% in March, still well ahead of the Federal Reserve's 2% target.

Gold rose to a record US$2,413.80 per ounce on April 19 but has mostly moved lower since then despite Middle East violence as hopes for a near-term cut to interest rates by the Federal Reserve dim.

"This week's inflation data will undeniably serve as a beacon on the possible Fed action, but the current sentiment is anything but sanguine. In a nutshell, the lowering of the borrowing costs is more likely to occur in the UK and in Europe ahead of the US, PVM Oil Associates noted.

The dollar eased despite the dimming outlook for rate cuts from the Federal Reserve. The ICE dollar index was last seen down 0.18 points to 105.12.

Treasury yields also weakened, bullish for gold since it offers no interest. The US two-year note was last seen paying 4.84%, down 3.2 basis points, while the yield on the 10-year note was down 2.9 basis points to 4.473%.