Gold prices eased off a two-and-a-half week low on Wednesday, as markets took a breather after comments by Federal Reserve Chair Jerome Powell in the previous session weighed heavily on the precious metal.

Comex gold futures were steady at $1,319.5 a troy ounce by 02:00 a.m. ET (06:00 GMT), off Tuesday's two-and-a-half week low of $1,314.40.

Fed Chair Jerome Powell reiterated on Tuesday that the U.S. central bank would likely move forward with gradual increases in interest rates.

Powell was speaking at his first semi-annual monetary policy testimony to the House Financial Services Committee since taking over the helm of Fed earlier this month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 90.29, after hitting a two-and-a-half week peak of 90.41 overnight.

Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.

Gold prices also recovered after data on Wednesday showed that China's net gold imports increased by 65.2% in January. China is the world's top gold consumer.