Gold prices fell during trading on Tuesday for the second session in a row, with Treasury bond yields and the dollar rising amid expectations that the Federal Reserve will keep interest rates high for a longer period.
Gold in spot transactions fell 0.8% to $1,900.17 per ounce, while US gold futures contracts fell 0.9% to $1,919.00 per ounce.
Chicago Federal Reserve Bank President Austin Goolsbee said on Monday that inflation remaining above the Fed's 2% target still represents a greater risk than the Fed's hawkish policy leading to a slowdown in the economy.
High interest rates increase the opportunity cost of holding gold, which is priced in dollars
The dollar rose to its highest levels in almost 10 months, while benchmark 10-year Treasury bond yields rose to their highest levels in 16 years.
Investors are awaiting the release of the Personal Consumption Expenditures Price Index, the Federal Reserve's preferred measure of inflation, scheduled for release on Friday to measure the path of interest rates.
