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Update: Gold Trades Lower, Dollar and Yields Rise as US Retail Sales Growth Eased in June

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(Updates prices in the second and final paragraphs.)

Gold fell midafternoon on Thursday as the dollar and yields rose after a report showed US retail sales slowed in June.

Gold for August delivery was last seen down $65.30, or 1.6%, to $3,986.50 per ounce.

Retail sales rose by 0.2% monthly in June, down from a rise of 1% in May and matching the consensus estimate, according to Marketwatch. The data is the latest this week to show a slowing US economy, after the country reported consumer and wholesale inflation eased last month amid falling energy prices.

That's curbing concerns the Federal Reserve will need to raise interest rates, even as oil rises on renewed fighting between the U.S. and Iran.

"Gold remains trapped in a broad USD 3,950-4,200 range as investors balance the inflationary impact of higher energy prices and the prospect of tighter Federal Reserve policy against the longer-term economic risks from a prolonged energy shock," Saxo Bank wrote.

The greenback was higher, with the ICE dollar index last seen up 0.2914 points to 100.78. Treasury yields also climbed, with the US two-year note last seen at 4.17%, up 2.7 basis points, while the yield on the 10-year note was up 1.5 points to 4.569%.

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