02:00 PM EDT, 07/25/2024 (MT Newswires) -- (Updates prices.)

Gold traded sharply lower midafternoon on Thursday even as the dollar weakened as the United States' economy grew at a faster than expected pace in the second quarter.

Gold for December delivery was last seen down US$64.00 to US$2,400.00 per ounce.

The U.S. Bureau of Economic Analysis on Thursday said the country's gross domestic product grew at a 2.8% pace in the second quarter, up from 1.4% in the first quarter and ahead of the consensus estimate for a 2.1% rise, according to Marketwatch.

The report showed the U.S. economy remains strong even with interest rates at a 23-year high. The Federal Reserve is expected to begin a cycle of cutting interest rates in September, though the Friday release of the June Personal Consumption Expenditures (PCE) Index, the central bank's preferred inflation measure, will affect the decision. The index is expected to rise 2.5% annualized, down from 2.6% in May.

The dollar fell following the GDP data. The ICE dollar index was last seen down 0.12 points to 104.27.

Treasury yields were mixed. The U.S. two-year note was last seen paying 4.449%, up 0.6 basis points, while the yield on the 10-year note was down 2.9 basis points to 4.264%.