Gold prices fell to 1-week lows as US Fed Jerome Powell set rates higher.

Gold prices fell to a one-week low today after US Federal Reserve Chairman Jerome Powell said interest rates may need to rise more than previously expected to curb inflationary pressures.

Spot gold was down 0.2% at $1,810.84 an ounce by 0409 GMT. US gold futures were down 0.4% at $1,813.60.

The U.S. Fed may need to raise interest rates more than expected in response to recent strong data, and is poised to make bigger moves if incoming data suggests tougher measures are needed to control “broadly” inflation, Jerome Powell said on the first day. his semiannual, two-day day of testimony before Congress.

Gold fell 1.9%, or more than $30, to $1,812.55 after Jerome Powell’s speech on Tuesday.

“No one wants to buy gold today after Powell’s bleak comments… and there’s very little gold selling, prices are down a bit, but without confidence – gold looks amazing today,” said Matt Simpson, senior market strategist at the City. Index.

“A break below $1,800 is on the cards for gold,” he added.

Higher interest rates generally make gold less attractive because they increase the opportunity cost of holding an asset that does not generate any interest.

The U.S. central bank slowed to a 25 basis point hike in interest rates at its last meeting, following a rate hike last year to combat decades of inflation, but a flurry of data in recent weeks has fueled concerns that the Fed will stay on course. tightening of monetary policy.

Fed policy rate futures traders are betting on a 50 basis point hike at the Fed’s March 21-22 policy meeting.

The dollar index hit a three-month high, making bullion less affordable for buyers holding other currencies. [USD/]

Investors await the US jobs report for February on Friday.

Spot silver was down 0.5% to $19.95 an ounce, platinum was up 0.2% to $931.33, and palladium was down 0.2% to $1,384.37.

(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)