02:00 PM EDT, 07/08/2024 (MT Newswires) -- (Updates prices.)

Gold prices dropped off a seven-week high midafternoon on Monday as the dollar rose ahead of key U.S. inflation data coming this week.

Gold for August delivery was last seen down US$32.60 to US$2,365.10 per ounce, after closing at the highest since May 22 on Friday.

"Gold is erasing some of the Friday session gains. Long-term we believe investors will be positive on gold as uncertainty about the US economy and unsustainability of the US deficit remains," Saxo Bank noted.

The drop comes ahead of this week's release of the U.S. June Consumer Price Index on Thursday. The report is expected to show consumer prices continue to moderate, with the consensus estimate expecting prices last month rose at a 3.1% annualized rate, down from 3.3% in May, according to Marketwatch.

Friday sees the release of the June Producer Price Index, which is expected to post a month over month rise of 0.1% following a drop of 0.2% in May.

The dollar edged higher, with the ICE dollar index last seen up 0.8 points to 104.95

Treasury yields were mixed, with the U.S. two-year note last seen up 1.2 basis points to 4.624%, while the 10-year note was paying 4.271%, down 1.5 basis points.