02:00 PM EDT, 05/16/2024 (MT Newswires) -- (Updates prices.)

Gold prices eased off a three-week high midafternoon on Thursday as the dollar and yields rebounded after a day-prior drop as a report showed the US consumer price index eased in April.

Gold for June delivery was last seen down US$9.60 to US$2,385.30 per ounce.

The precious metal looked set to retest the US$2.400 mark on Wednesday for the first time since April 19, as the dollar and yields weakened following tepid CPI and retail sales reports that revived hopes for a cut to US interest rates this year.

"Gold prices should remain strong as speculators continue to anticipate the start to the Fed cutting cycle. We are projecting nominal and real bond yields to head lower in the back half of the year, and coupled with strong demand, we've raised our gold forecast to $2,250/oz in 2024 with elevated levels expected to persist into 2025," TD Bank economist Marc Ercolao said in a report.

The dollar rose off a month low, with the ICE dollar index last seen up 0.12 to 104.46.

Treasury yields also strengthened, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.791%, up 5.3 basis points, while the yield on the 10-year noted was up 3.1 basis points to 4.375%.