Investing.com - Gold was lower on Thursday, as a higher U.S. dollar kept prices down.
Comex gold futures for June delivery were down 0.23% to $1,319.70 a troy ounce as of 10:35 AM ET (14:35 GMT).
The price of bouillon was driven lower by the rise in the greenback. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.25% to 91.26.
Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.
The precious medal had risen higher in early morning trading as bond yields rose above 3% for the first time since 2014. However the yields fell on Thursday after upbeat economic data.
The yield on the benchmark United States 10-Year Treasury note fell 1.30% to 2.985.
Meanwhile economic data supported speculation that the U.S. economy is strong enough for increased interest rate hikes over the next few months. The number of people who filed for unemployment assistance in the U.S. last week fell more than expected, decreasing by 24,000 to 209,000 the Labor Department said on Thursday. A separate report showed that U.S. durable goods orders rose more than expected in March
Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.
Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
Elsewhere on the Comex, silver futures were down 0.53% to $16.415 a troy ounce. Among other precious metals, Platinum Futures fell 0.30% to $910.00 while Palladium Futures surged 1.69% to $983.85 an ounce. Copper futures decreased 0.40% to $3.122 a pound.