LONDON: Gold dipped almost 2 percent as the dollar extended gains following a raft of strong US data and recent comments from US Federal Reserve Chair Janet Yellen that reinforced the central bank’s tightening bias on monetary policy.

Spot gold dropped to a two-week low of $1,185.35 an ounce earlier and was down 1.6 percent at $1,187.59 by 1413 GMT.

US gold futures for June delivery were down $16.70 at $1,187.30 an ounce. Silver fell 2.2 percent to a two-week low of $16.62 an ounce.

Platinum dropped 2.1 percent to $1,123.49 an ounce and palladium slipped 0.3 percent to $783.47 an ounce.

The dollar continued its strong run, up 1.2 percent against a basket of leading currencies, after data showed US business investment spending plans increased solidly for a second straight month in April.

Separately, new US single-family home sales rose more than expected in April and consumer confidence rose in May.

Tuesday’s data added to optimism after strong inflation numbers on Friday and Fed Yellen’s comments that interest rates will be raised this year as the US economy was set to bounce back from an early-year slump.