Gold prices inched up on Thursday but hovered near a seven-week low, constrained by a strong dollar and expectations of the U.S. Federal Reserve winding down stimulus measures soon. Spot gold was up 0.2% at $1,729.83 per ounce. Prices fell to their lowest level since Aug. 9 at $1,720.49 on Wednesday. U.S. gold futures were up 0.4% at $1,729.20. The dollar index steadied near a year’s high touched on Wednesday, raising gold’s cost for buyers in other currencies. Benchmark U.S. 10-year Treasury yields were a tad lower, lowering the opportunity cost of holding non-interest bearing bullion. But they held above 1.5%, a level not seen since late June, still posing a challenge for gold. Supply constraints thwarting global economic growth could still get worse, keeping inflation elevated longer, even if the current spike in prices is still likely to remain temporary, the world’s top central bankers warned on Wednesday. Gold is traditionally seen as an inflation hedge, although reduced central bank stimulus and interest rate hikes tend to push government bond yields up, in turn translating into a higher opportunity cost for gold that pays no interest.