Gold futures on Tuesday hit their lowest closing price in seven weeks, dragged down by a steady rise in Treasury yields and a stronger dollar.

Gold futures for December delivery on the New York Mercantile Exchange fell $14.50, or 0.8%, to close at $1737.50 an ounce. Tuesday's gold futures closed at their lowest close since Aug. 10, based on the most active contract prices.

Treasury yields rose in tandem with the dollar, putting pressure on gold prices. The yield on the benchmark US 10-year Treasury note rose above 1.5 per cent on Tuesday, while the dollar index (DXY) rose 0.4 per cent.

The rise in Treasury yields reduces the attractiveness of gold, which does not offer interest rates. The rise in the dollar makes gold more expensive for those who use other currencies, and it also puts pressure on gold prices.

Gold market investors also weighed comments made by Federal Reserve Chairman Powell before the Senate Banking Committee. Mr Powell said on Tuesday that some of the supply-side bottlenecks behind the surge in inflation had "gotten worse".

Meanwhile, silver futures for December delivery fell 23 cents, or 1%, to $22.467 an ounce.

December copper futures fell 1 per cent, benefiting nearly $4.247 a pound.

The January platinum contract fell 1.6 per cent to $961.90 an ounce. The palladium contract fell 4.8 per cent to $1854.20 an ounce in December.