02:00 PM EDT, 06/14/2024 (MT Newswires) -- (Updates prices.)

Gold traded higher midafternoon on Friday, rebounding from a five-week low touched a day earlier despite a stronger dollar as treasury yields narrowed.

Gold for August delivery was last seen up US$31.50 to US$2,349.50 per ounce.

The price of the metal touched a record US$2,461.70 per ounce on May 20 on expectations cuts to U.S. interest rates would soon be on the way, bullish for gold since it pays no interest. However the prospects for cuts further dimmed this week, with the Federal Reserve ending the two-day meeting of its policy committee on Wednesday with rates left unchanged and forecasting only a single cut to rates this year.

The Fed decision has supported the dollar, with the ICE dollar index last seen up 0.32 points to 105.51.

However treasury yields are easing after U.S. consumer and producer prices indices released this week both showed slower than expected inflation. The yield on the U.S. two-year note was last seen down 0.1 basis points to 4.704%, while the 10-year note was paying 4.22%, down 2.9 basis points.