Gold slipped on Tuesday, the dollar index strengthened and yields surged after U.S. Federal Reserve Chairman Jerome Powell hinted at a more aggressive tightening of monetary policy than previously anticipated.
Spot gold dipped 0.4 percent to $1,928.39 per barrel, while U.S. gold futures were marginally lower at $1,928.45.
"We will take the necessary steps to ensure a return to price stability," Powell said in remarks to the National Association for Business Economics on Monday.
"In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so."
He added, "And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well."
U.S. Treasury yields have risen to their highest level since 2019 and Euro zone government bond yields followed suit after Powell's hawkish comments.
