Shafa News / Gold prices fell over 1% to a near one-week low on Tuesday after U.S. Federal Reserve Chair Jerome Powell hinted at big rate hikes this year to fight against soaring inflation, sending Treasury yields higher.

Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non-yielding bullion.

Spot gold was down 0.7% at $1,921.58 per ounce by 01:57 p.m. EDT (1757 GMT).

U.S. gold futures settled down 0.4% at $1,921.50.

Powell said on Monday policymakers needed to move "expeditiously" as inflation runs hot, and he raised the possibility of 50 basis point (bps) hikes.

Powell's hawkish stance triggered a sharp bond market sell-off and sent the benchmark 10-year yields to their highest since May 2019.

Silver fell 1.6% to $24.80 per ounce and platinum dropped 1.6% to $1,021. Palladium dipped 3.8% to $2,487.19.

(Reuters)