Gold plummets 1.5% to close below $2,000

Gold prices finished at a two-week low at settlement of trading today, May 16, after the release of some economic readings boosted the US dollar's appeal as more policymakers' remarks indicated further monetary tightening in the US.

Confidence among US single-family homebuilders rose in May to the highest level in 10 months, while industrial production saw unexpected growth following two months of stability. Further, retail sales made a monthly gain of 0.4%, after sliding 0.7% in March.

In an interview with Bloomberg TV, Richmond Fed Chairman Thomas Barkin said additional interest rate hikes would be needed "if inflation continues at levels well above our target."

In separate remarks, Fed Bank of Cleveland President Loretta Mester noted she does not think the US central bank is at a point yet where it can hold interest rates steady for some time, given the stubbornly-high inflation levels.

Bullion for June delivery contracted by 1.50%, or $29.70, to end at $1,993 an ounce, after hitting $1,989.10 per ounce in early trading.

On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, climbed 0.10% to 102.57 points at 08:39 pm Makkah time.