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Gold fell in early New York trade on Tuesday to its lowest in more than a week, as the dollar rallied after comments from US Federal Reserve Vice Chair Richard Clarida bolstered expectations that the central bank would continue hiking interest rates.

Spot gold fell 0.7 percent to $1,213.61 per ounce at 13:01 p.m. EST (1801 GMT). During the session it touched its lowest since Nov. 15 at $1,211.36. US gold futures dropped 0.7 percent to $1,213.30 an ounce.

"Clarida softened gold with body blows and the stronger dollar on the back of consumer confidence (data) just delivered a left hook," said Tai Wong, head of metals trading at BMO. "I think gold will be dependent on the dollar for rest of day, and we could see a bounce if the dollar retraces."

The dollar gained after Clarida said the central bank should continue to gradually raise interest rates, but it was "especially important" to monitor economic data as monetary policy was getting close to a neutral stance.

"Most of those comments (from Fed officials) so far have been along the lines of continuing along the path of current rate hikes ... certainly some of those comments have supported the dollar and pressured gold," said David Meger, director of metals trading at High Ridge Futures.

Higher interest rates tend to boost the dollar, making gold more expensive for holders of other currencies. In a separate interview, St. Louis Fed President James Bullard said the central bank may face a year of difficult decisions, with rates still low by historic standards but growth ebbing.

Meanwhile, investors are also "jockeying for position" going into the G20 summit, said Michael Matousek, head trader at US Global Investors. Investors also awaited the minutes from the US Fed's meeting on Nov.7-8 for indications on the future path of rate hikes in 2019, while Fed Chairman Jerome Powell is due to speak on Wednesday.

Among other precious metals, spot silver fell 1.2 percent to $14.06 an ounce, having touched $14.05, its lowest since Nov. 15. Platinum slid 0.9 percent to $832.20, after touching its lowest in nearly 2 weeks at $825.25. Palladium rose 0.7 percent to $1,148.74.

Copyright Reuters, 2018

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