Gold prices slip before US-Iran talks: Dollar rises; Fed minutes due
Gold prices fell on Tuesday as the US dollar strengthened and investors turned cautious before key global developments. Spot gold and US futures declined amid uncertainty over United States–Iran nuclear talks and Russia–Ukraine peace discussions. Markets are also awaiting minutes from the Federal Reserve January meeting for signals on interest rate cuts.
Gold prices fall
Gold prices declined on Tuesday as the US dollar gained against major currencies. A stronger dollar makes gold more expensive for buyers using other currencies. This reduces demand and pushes prices down. Spot gold fell 1.5% to $4,918.65 per ounce after dropping more than 2% earlier in the day. US gold futures for April delivery slipped 2.2% to $4,937 per ounce. The dollar index rose 0.2%, adding pressure on bullion. Traders said many investors are avoiding big bets for now. They are waiting for clarity on global political risks and US interest rates.
Geopolitical developments
Investors are closely tracking indirect nuclear talks between the US and Iran in Geneva, but there are no clear signs of a breakthrough yet. The US has increased its military presence in the Middle East, adding to the uncertainty. At the same time, Russian and Ukrainian officials are meeting in Geneva for US-backed peace discussions. Any progress in these talks could reduce global tensions. If tensions ease, demand for safe-haven assets like gold may fall. But if talks fail, gold could see fresh buying.
Fed minutes
Another key event this week is the release of minutes from the January meeting of the Federal Reserve. Investors want to understand when the central bank may start cutting interest rates. Markets currently expect the first rate cut of 2026 to happen in June. Gold usually performs well when interest rates are low. This is because gold does not pay interest, and lower rates reduce the cost of holding it. If the Federal Reserve signals that rate cuts are coming soon, gold prices may recover. However, if policymakers remain cautious about cutting rates, prices could stay under pressure. Other precious metals also declined. Silver fell 2.5% to $74.63 per ounce. Platinum dropped 2.5% to $1,991.01, and palladium lost 3.1% to $1,670.92.