02:00 PM EST, 11/27/2024 (MT Newswires) -- (Updates prices.)

Gold traded higher mid-afternoon on Wednesday as the dollar and treasury yields weakened amid a flurry of U.S. economic data released ahead of the Thanksgiving holiday, including a key inflation report.

Gold for February delivery was last seen up US$18.00 to US$2,664.30 per ounce.

"Gold traded higher for a second day after finding support ahead of USD 2,600. The recent choppy price action points to a near-term peak as traders book profits. However, given the challenging macroeconomic and geopolitical climate, the prospect for further gains next year remains," Saxo Bank noted.

Initial U.S. jobless claims rose by 213,000 last week, unchanged from the prior week and slightly below the consensus estimate for 215,000 claims, according to Marketwatch, while the initial revision of third-quarter gross domestic product left the the Bureau of Economic Analysis' initial 2.8% growth estimate unchanged.

The October Personal Consumption Expenditures Index, the Federal Reserve's preferred inflation measure, rose by 2.3% annualized, matching expectations but up from 2.1% a month earlier.

The dollar was sharply lower following the data, with the ICE dollar index last seen down 1.05 points to 105.96.

Treasury yields also fell, with the U.S. two-year note last seen paying 4.215%, down 4.3 basis points, while the yield on the 10-year note was down 7.3 points to 4.237%