SINGAPORE: Gold prices slipped on Tuesday following a sharp drop the previous day, as the dollar hit multi-week highs ahead of US Federal Reserve Chair Jerome Powell’s appearance at a congressional committee.

Spot gold fell 0.9% to $1,895.38 per ounce by 0738 GMT. Prices fell more than 3% to $1,882.70 on Monday, the lowest level since Aug. 12.

US gold futures were down 0.5% at $1,900.20 on Tuesday.

“Resurfacing of the coronavirus and the fear that European countries will again go into lockdowns are triggering safe-haven buying in the dollar index and because of that we have seen correction in the gold prices,” said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.

“We may see gold hitting $1,880-$1,890 level before recovering,” she added.—