Gold futures tumbled Tuesday as the dollar rallied on somewhat hawkish remarks from Federal Reserve Chair Jerome Powell.
Powell, speaking for the first time with Congress, would not rule out the possibility of four rate hikes this year.
April gold dropped $14.20, or 1.1%, to settle at a 2-week low.
In Powell’s view, the recent stock market correction will not convince the Fed to delay raising interest rates.
“At this point, we do not see these developments as weighing heavily on the outlook for economic activity, the labor market and inflation. Indeed, the economic outlook remains strong,” Powell said.
“The robust job market should continue to support growth in household incomes and consumer spending, solid economic growth among our trading partners should lead to further gains in U.S. exports, and upbeat business sentiment and strong sales growth will likely continue to boost business investment.”