Investing.com - Gold prices remained lower on Tuesday, as expectations for upcoming rate hikes by the Federal Reserve continued to support to the dollar.
Comex gold futures were down 0.40% at $1,315.10 a troy ounce by 08:05 a.m. ET (12:05 GMT).
The greenback remained supported after San Francisco Fed President John Williams said on Saturday that the Fed should raise interest rates three times this year given that economy will benefit from tax cuts.
The comments came a day after Cleveland Fed President Loretta Mester said she expects about four interest rate hikes this year, thanks to solid U.S. economic growth and low unemployment.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.18% at 92.25, the highest since December 29.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures dropped 0.52% to $17.06 a troy ounce.