CHICAGO, Feb. 27 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange posted more than 1 percent losses on Tuesday, as the U.S. dollar index rebounded following new Fed chairman's pledge for gradual interest rate hikes.
The most active gold contract for April delivery fell 14.2 U.S. dollars, or 1.07 percent, to settle at 1,318.60 dollars per ounce.
U.S. Federal Reserve Chairman Jerome Powell confirmed to lawmakers on Tuesday that the central bank would continue to gradually raise interest rates.
Powell told lawmakers in his first monetary policy testimony that "gradually reducing monetary policy accommodation will sustain a strong labor market while fostering a return of inflation to 2 percent."
The Fed continues to view some of the shortfall in inflation last year as "likely reflecting transitory influences that we do not expect will repeat," he added.
Market observers viewed Powell's remarks as a continuation of his predecessor's approach of "cautious hawkishness," which immediately strengthened the dollar.
The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.49 percent to 90.32 as of 1746 GMT, rebounding above the 90 level.
Gold and the dollar typically move in opposite directions. If the dollar goes up, gold futures will fall as gold, measured in U.S. dollar, becomes less attractive to investors using relatively weak currencies.
As for other precious metals, silver for May delivery fell 18.8 cents, or 1.13 percent, to settle at 16.434 dollars per ounce. Platinum for April went down 17.2 dollars, or 1.72 percent, to close at 984.60 dollars per ounce.
