Canadian stock index futures fell on Monday, signaling a fresh round of selloff, as gold and other precious metals weakened on the prospect of higher U.S. interest rates.

Futures on the S&P/TSX index were down 0.6% at 7:04 a.m. ET (1104 GMT).

The benchmark TSX index on Friday closed at its lowest level in over two weeks after Federal Reserve Chief Jerome Powell warned the U.S. central bank will continue to raise rates in a bid to curtail inflation even as that causes pain for households and businesses.

Money markets see over a 60% chance that both the Fed and the Bank of Canada will hike rates by three-quarters of a percentage point in September and expect policy rates to peak between 3.75% and 4% next year.

Shares of precious metal miners will be in focus as gold and other precious metals dropped on the back of a surge in dollar, making it more expensive for overseas buyers.

Prospects of higher interest rates and a jump in yields shot up the safe-haven U.S. dollar to a fresh two-decade peak at 108.98 against a basket of major currencies.

However, crude prices remained supported as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar. Oil, which edged up 0.3% on Monday, is one of Canada's top exports.

Meanwhile on Wall Street, Dow e-minis were down 283 points, or 0.88%, S&P 500 e-minis dropped 40.25 points, or 0.99% and Nasdaq 100 e-minis fell 152.5 points, or 1.21%.

Canada is taking a second crack at developing a liquefied natural gas (LNG) export industry on its west coast a decade after soaring costs and indigenous opposition derailed a previous wave of proposed LNG terminals. (Reporting by Aniruddha Ghosh in Bengaluru; Editing by Shinjini Ganguli)