Gold and silver prices moved lower again on Tuesday, extending the previous session’s retreat as traders remained cautious ahead of a busy week of U.S. economic releases.
Market sentiment was also shaped by expectations surrounding scheduled discussions between the United States and Iran over Tehran’s nuclear program. At the same time, reduced participation due to public holidays in both the U.S. and China led to lighter trading volumes, while a firmer dollar added downside pressure to precious metals.
Spot gold declined 1.9% to $4,898.51 per ounce, while April gold futures fell 2% to $4,916.66 per ounce as of 01:22 ET (06:22 GMT).
Silver prices followed suit, with spot silver dropping nearly 3% to $74.4875 per ounce. Platinum eased 0.7% to $2,007.43 per ounce.
Nuclear negotiations set for Geneva
Representatives from Washington and Tehran are scheduled to meet in Geneva to address their longstanding dispute over Iran’s nuclear enrichment activities.
The talks come amid heightened geopolitical strain in the Middle East. The United States has bolstered its military presence in the region, and President Donald Trump has repeatedly signaled that military options remain on the table should Iran refuse to reach an agreement.
Speaking to reporters on Monday, Trump said he would be indirectly involved in the discussions and suggested that Iran is interested in striking a deal.
In recent weeks, the U.S. has deployed two aircraft carriers along with additional naval forces to the region. Iran has responded by launching military drills in the Strait of Hormuz, a critical chokepoint for global oil shipments.
Despite these developments, safe-haven flows into precious metals have been limited. Investors remain wary after a sharp pullback from late-January highs, when speculative enthusiasm drove gold and other metals to record levels.
Focus shifts to U.S. indicators and Fed minutes
Attention now turns to a slate of U.S. economic reports and the minutes from the Federal Reserve’s January policy meeting, scheduled for release on Wednesday.
Industrial production figures are due midweek, while Friday will bring the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred measure of inflation.
The PCE reading is expected to provide further clarity on inflation trends and the potential direction of interest rates.
Gold has faced headwinds in recent weeks amid uncertainty over U.S. monetary policy, particularly after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair.
Warsh is generally seen as less dovish, and his nomination contributed to notable selling in the metals market. The downturn was compounded by profit-taking following January’s rapid rally.
Recent U.S. economic data have sent mixed signals, with inflation easing modestly while labor market conditions showed resilience.
A stronger dollar during holiday-thinned trading on Monday further pressured commodity prices, adding to gold’s recent weakness.
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