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The dollar index (.DXY), opens new tab gained 0.5% from an over two-week low, making bullion less attractive for non-U.S. buyers, while benchmark 10-year yields rose from a one-week low. Stronger U.S. wholesale price data tempered bets on a larger, half-point cut next month. The Labor Department reported the producer price index rose 3.3% year-on-year in July, beating forecasts of 2.5% while weekly jobless claims came in lower than expected, at 224,000 versus 228,000 forecast. Gold trades lower as the stronger than expected U.S. PPI print may lower rate cut expectations as they feed into a higher Core PCE inflation print for July as well, likely keeping the Federal Reserve cautious on rate cuts," said Saxo Bank's head of commodity strategy, Ole Hansen. "Overall, the print does not alter our bullish view on gold as the Fed eventually will have to choose between fighting inflation or supporting the economy.