** Australian gold sub-index .AXGD falls as much as 7%, hitting its lowest level since February 23

** Sub-index set for worst intraday trading session since February 2, extending losses for second straight session

** Bullion prices slipped 3.6% on Tuesday, weighed by a stronger dollar and dimming prospects for rate cuts from the U.S. Federal Reserve GOL/

** Aussie gold miners Northern Star Resources NST.AX and Evolution Mining EVN.AX both fall over 5%

** YTD, sub-index up ~11.3%, including the day's moves

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))