NEW YORK: 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 curb 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 goldwas down 1% at $1,916.93 per ounce by 11:56 a.m. ET (1556 GMT). U.S. gold futuresslipped 0.7% to $1,915.10.