2021.02.1809:45:00UTC+00Gold Inches Higher As Yields Retreat

Gold prices were a tad higher on Thursday after hitting a 2-1/2-month low in the previous session on the back of dollar strength and rising U.S. Treasury yields.

Spot gold rose 0.3 percent to $1,781.97 per ounce, after having hit its lowest since Nov. 30 at $1,768.60 on Wednesday. U.S. gold futures were up half a percent at $1,781.

The dollar traded shy of recent highs and U.S. Treasury yields stabilized, helping lift the non-yielding bullion's appeal.

Benchmark 10-year Treasury yields retreated from a near one-year peak hit on Wednesday after minutes of the Fed's January meeting showed Federal Reserve officials were still prepared to keep monetary policy easy to help the coronavirus-hit economy.

The dollar also retreated after rising in response to encouraging retail sales, industrial production and producer price data released overnight.

U.S. retail sales surged in January by the most in seven months, beating all estimates, while producer prices increased by the most since 2009, separate reports showed.

Another report on industrial production from the Federal Reserve showed a rise of 0.9 percent in January, trouncing economist forecasts of a 0.5 percent gain.