Gold prices extended losses on Tuesday, pressured by easing geopolitical tensions in Iran and Russia and a stronger U.S. dollar, while investors awaited the release of the Federal Reserve’s January FOMC meeting minutes later this week.
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Spot gold fell 0.8% to $4,953.90 per ounce after earlier dropping 1%, while U.S. gold futures for April delivery declined 1.5% to $4,972.90 per ounce. Analysts attributed the retreat to subdued geopolitical risk, which limited demand for the traditional safe-haven metal.
Ilya Spivak, head of global macro at Tastylive, noted, “It [gold] is not really going very far because it doesn’t look like the [geopolitical] risk is really expanding beyond very much. Those FOMC minutes and some insight into the Federal Reserve thinking are probably going to be important indicators for prices.”
U.S. President Donald Trump stated on Monday that he would be involved “indirectly” in talks between Iran and the U.S. over Tehran’s nuclear program in Geneva, expressing optimism that Iran was seeking a deal. At the same time, Ukraine and Russia representatives met in Geneva for a new round of U.S.-mediated peace talks, likely focusing on territorial issues.
The dollar index gained 0.2% against a basket of currencies, increasing the cost of greenback-priced bullion for holders of other currencies. With investors anticipating the first U.S. interest rate cut in June, according to CME’s FedWatch Tool, gold remained under pressure due to the stronger dollar and uncertainty over the pace of Fed policy changes.
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Spot silver also weakened, falling 1.6% to $75.33 per ounce after an earlier decline of over 3%. Despite short-term losses, market observers continue to see potential for gold to climb toward previous highs near $5,600 per ounce if broader geopolitical or monetary risks intensify.