Federal Reserve Chair Jerome Powell on Monday said the U.S. economy is in "solid shape" and that more interest rate cuts can continue if the economy continues to evolve as expected.

Gold prices hovered below the record peak on Tuesday after the U.S. Federal Reserve Chair tempered expectations for more hefty interest rate cuts this year, with investors awaiting a series of labour data this week for further cues.

Powell said two more rate cuts are possible if the economy continues to perform as expected, though they are likely to not be as aggressive as the cut two weeks ago.