NEW YORK: Gold prices slipped from a two-month high on Thursday as the dollar and bond yields ticked higher, although hopes for a pause in rate hikes by the US Federal Reserve after July meeting limited the decline.

Spot gold was down 0.5% at $1,967.59 per ounce by 11:47 a.m. EDT (1547 GMT), after hitting its highest since May 17 earlier in the session.

US gold futures fell 0.5% to $1,970.30.

“The yields and dollar have actually bounced a little, so we’re seeing a slight reverse effect in gold. Also this $2,000 area is going to be a bit of a challenge for the gold market in the short term,” said David Meger, director of metals trading at High Ridge Futures.

The dollar gained 0.6% against its rivals after the US jobless claims data, making gold more expensive for other currency holders. Benchmark 10-year US Treasury yields rose to 3.850%. [USD/ Data showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, touching the lowest level in two months amid ongoing labor market tightness.