Gold prices fell on Thursday as hotter-than-expected U.S. inflation data and a drop in jobless claims lifted the dollar and Treasury yields, trimming the odds of a supersized September rate cut.

Gold extended gains to a third session on Thursday, supported by rising expectations of an interest rate cut by the U.S. Federal Reserve in September following tame inflation data, which also weighed on the dollar.

The dollar’s weakness, near one-week low US Treasury yields, and escalating global trade tensions have further fuelled safe-haven demand of the yellow metal.