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Gold prices fell over 1% on Tuesday after the U.S. Federal Reserve Chair Jerome Powell hinted at big rate hikes down the 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 gold XAU= was down 1.1% at $1,913.96 per ounce by 10:16 a.m. ET (1416 GMT).

U.S. gold futures GCv1 slipped 0.8% to $1,913.60.

"The fact the Fed is ready to do half point increases versus a quarter point moving forward is all pretty hawkish and has pushed gold lower," RJO Futures senior market strategist Bob Haberkorn said.

"A comment like that would normally send gold significantly lower, like a $50 lower move, but the fact the Russia-Ukraine situation is on the forefront is keeping a floor on gold," he added.

Powell said on Monday policymakers needed to move "expeditiously" as inflation runs hot, and he raised the possibility of 50 basis point (bps) hikes.

The hawkish stance from Powell triggered a sharp sell-off in the bond market and sent the benchmark 10-year yields US10YT=RR to their highest since May 2019. US/

Traders are now pricing in as much as a 50 bps rate hike at the Fed's next meeting in May. Last week, the Fed raised rates by 25 bps for the first time in three years. FEDWATCH

Despite this, pressure on gold has been relatively muted since investors' focus is on the Ukraine conflict, with any big developments likely to trigger sharp price swings, analysts said.

Rising gold exchange-traded fund holdings show that despite day-to-day price fluctuations, asset managers are moving back into gold to diversify and as a hedge against inflation and economic downturn, said Saxo Bank analyst Ole Hansen. GOL/ETF

Silver XAG= fell 2.1% to $24.66 per ounce and platinum XPT= dropped 2.2% to $1,014.74. Palladium XPD= dipped 3.1% to $2,504.28.