02:00 PM EDT, 06/17/2024 (MT Newswires) -- (Updates prices.)

Gold prices moved lower midafternoon on Monday as yields rebounded after narrowing on Friday when a report showed weak consumer sentiment.

Gold for August delivery was last seen down US$20.20 to US$2,328.90 per ounce.

The drop follows on Friday's rise up from a five-month low as treasury yields narrowed following weak U.S. economic data, with June consumer sentiment unexpectedly weakening from May.

"Gold trades lower after rising on Friday in response to an unexpected drop in US consumer spending while political uncertainty in Europe saw traders prefer dollars and gold over the euro," Saxo Bank noted,

Yields rebounded early on Monday, raising the carrying cost of owning gold. The U.S. two-year note was last seen paying 4.759%, up 4.4 basis points, while the yield on the 10-year note was up 4.8 basis points to 4.276%.

The dollar was lower, with the ICE dollar index last seen down 0.12 points to 105.43.