Gold and silver prices declined on Tuesday, extending losses from the previous session as investors remained cautious ahead of several important U.S. economic releases scheduled for this week.
Market sentiment was also influenced by expectations surrounding upcoming nuclear negotiations between the United States and Iran. Meanwhile, public holidays in both China and the U.S. resulted in lighter trading volumes, and a modest uptick in the U.S. dollar added further pressure on precious metals.
Spot gold dropped 1.9% to $4,898.51 per ounce, while April gold futures fell 2% to $4,916.66 per ounce by 01:22 ET (06:22 GMT). Spot silver declined nearly 3% to $74.4875 per ounce, and platinum slipped 0.7% to $2,007.43 per ounce.
U.S.-Iran nuclear talks heighten geopolitical focus
Officials from the United States and Iran are scheduled to meet in Geneva, Switzerland, to discuss Tehran’s nuclear program. The talks come at a time of elevated tensions in the Middle East, with the U.S. increasing its military presence in the region.
President Donald Trump has repeatedly warned of potential military action if Iran does not agree to a deal. On Monday, he stated that he would be indirectly involved in the negotiations and expressed confidence that Iran is seeking an agreement.
In recent weeks, the U.S. has deployed two aircraft carriers and multiple warships to the Middle East, while Iran has launched military drills in the Strait of Hormuz. Despite the geopolitical backdrop, precious metals have attracted limited safe-haven demand. Investors remain cautious after the sharp correction in gold and silver prices that followed record highs in January.
U.S. economic data and Fed minutes in focus
Investor attention is now firmly on upcoming U.S. economic data, along with the minutes from the Federal Reserve’s January meeting due on Wednesday.
Industrial production figures are set for release midweek, while the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred measure of inflation — will be published on Friday. The PCE data will be closely monitored for insights into inflation trends and the potential direction of interest rates.
Uncertainty surrounding U.S. monetary policy has weighed on gold in recent weeks, particularly after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair. Warsh is considered less dovish, and his nomination triggered notable selling in precious metals, especially as traders locked in profits following a speculative rally earlier this year.
Recent economic data has delivered mixed signals. Inflation eased slightly in January, while labor market figures showed improvement. At the same time, a firmer U.S. dollar during holiday-thinned trading added pressure to commodity prices, contributing to the decline in gold and silver.
