Muscat: Gold prices dropped in early trade today under pressure from the rise of the US dollar and Treasury yields, while investors await an important inflation report to assess the Federal Reserve's monetary policy path. Gold prices fell by 0.1% in spot transactions, reaching $2912.94 per ounce, while US gold futures declined by 0.1% to $2927.20.

According to Oman News Agency, the dollar index rose by 0.2%, moving away from its lowest levels in 11 weeks, and US 10-year Treasury yields recovered from earlier losses. The increase in the dollar and Treasury yields often makes gold less attractive as an investment, contributing to the slight decline in prices.

As for other metals, silver remained steady at $31.84 per ounce, while platinum decreased by 0.1% to $964.95, and palladium dropped by 0.1% to $926.03. Investors are closely monitoring the upcoming inflation report, which could provide further insights into the Federal Reserve's future actions and potentially impact the metal markets further.