Gold futures on the COMEX division of the New York Mercantile Exchange fell Thursday as a global rise in government bond yields diminished the appeal of investing in precious metals that don't bear interest.

The most active gold contract for August delivery fell 3.3 U.S. dollars, or 0.26 percent, to settle at 1,245.80 dollars per ounce.

Yields on U.S. Treasury, notably the 10-year note, and European bonds, like the comparable German bond, shot to their highest levels in more than a month. A rise in yields can undercut appetite for metals like gold and silver.

Th U.S. Dollar Index was off 0.5 percent as of 1930 GMT, set for a monthly loss of 1.5 percent. Continued weakness in the U.S. dollar is bullish for gold, which is priced in the greenback. But with cross current pressure from the selloff in U.S. Treasury, it has contributed to a somewhat listless, trendless market for gold recently, said analysts.

As for other precious metals, silver for September delivery dropped 13.7 cents, or 0.82 percent, to close at 16.654 dollars per ounce. Platinum for October delivery went down 1.1 dollars, or 0.12 percent, to settle at 923.1 dollars per ounce.