Gold pares gains as dollar, bond yields climb after strong U.S. data [Video]

Gold prices pared gains on Thursday as the dollar and Treasury yields rose after stronger-than-expected U.S. economic data that could influence the size of interest rate cuts from the Federal Reserve.

Spot gold inched higher 0.3% at $2,455.79, after rising as much as 0.9% earlier in the session. U.S. gold futures rose 0.6% to $2,493.6.

“Retail sales being so positive that shows the economy is strong and that has kind of turned the markets, and the dollar is regaining some of its strength and gold’s losing some of its lustre,” said Chris Gaffney, president of world markets at EverBank.

U.S. retail sales increased 1.0% last month after a downwardly revised 0.2% drop in June, the Commerce Department’s Census Bureau said.

Separately, a Labor Department report showed the number of Americans filing new applications for unemployment benefits came in at 227,000 for the week ended Aug. 10, compared with an estimate …