02:00 PM EDT, 05/14/2024 (MT Newswires) -- (Updates prices.)

Gold traded higher midafternoon on Tuesday as the dollar and treasury yields weakened even after another measure showed US inflation continued to run hot last month.

Gold for June delivery was last seen up US$17.00 to US$2,360.00 per ounce.

The US Bureau of Labor Statistics on Tuesday reported the producer price index rose by 0.5% in April from March, up from a revised rise of 0.2% in March and ahead of the consensus estimate for a 0.3% monthly rise, according to Marketwatch.

Core PPI, which excludes volatile items like food and energy, rose 0.4%, up from 0.2% in March and above the 0.2% consensus estimate.

The report is the latest to show US prices continue to rise above the Federal Reserve's 2% target, again cutting into hopes the central bank will be able to lower interest rates from a 23-year high before year end. The US April consumer price index will be released on Wednesday, with the consensus estimate calling for a rise of 3.4% annualized, down from 3.5% in March.

The dollar moved lower after briefly spiking following the data. The ICE dollar index was last seen down 0.18 points to 105.04.

Treasury yields also moved lower after rising sharply following the PPI release, bullish for gold since it pays no interest. The US two-year note was last seen paying 4.834%, down 4.2 basis points, while the yield on the 10-year note was down 3.3 basis points to 4.46%.