02:00 PM EDT, 04/18/2024 (MT Newswires) -- (Updates prices)

Gold stayed near the US$2,400 mark midafternoon on Thursday despite rising treasury yields as the metal continues to test record highs.

Gold for June delivery was last seen up US$10.30 to US$2,398.70 per ounce. The metal has been unable to sustain a move above the US$2,400 mark despite buying momentum.

"Gold prices have rallied to record highs with market participants, ourselves included, attributing much of the driving force to be strong central bank demand, strong Chinese consumer demand, physical demand generally (take the Costco gold bar sales stories as an example), and geopolitical risks given ongoing conflicts in both Europe and the Middle East," RBC Capital Markets said in note.

The rise comes even as high treasury yields increase the carrying cost of owning gold. The U.S. two-year note was last seen paying 4.99%, up 4.5 basis points, while the yield on the 10-year note was up 4.9 basis points to 4.642%.

The dollar rose, with the ICE dollar index last seen up 0.19 points to 106.14.