Housebuilders (.FTNMX402020) declined 3% at one point as the prospect of more rate increases raised fresh concerns about mortgage costs.
The U.S. dollar was firmer ahead of Powell's congressional testimony, with the dollar index up 0.1% at 102.62.
Minutes of the central bank's last meeting showed only one of nine board members suggested reconsidering its policy of keeping bond yields low, and even then suggested it was best to wait a while.
Rising interest rates and higher bond yields have been a burden for gold, which was pinned at $1,934 an ounce , just above last week's three-month low of $1,924.99.
The Brent benchmark edged down 4 cents to $75.86 a barrel while U.S. crude lost 3 cents to $71.16.
Persons:
Toby, Powell, Jerome Powell, Tapas Strickland, Jerry del Missier, doggedly, Lawrence White, Wayne Cole, Jacqueline Wong, Lincoln, Alex Richardson, David Goodman
Organizations:
London Stock Exchange Group, REUTERS, . Federal, NAB, Nasdaq, Copper, BRITAIN Investors ramped, Bank of, U.S, Bank of Japan, Thomson
Locations:
City, London, Britain, Beijing, Asia, Pacific, Japan, Bank of England