Gold and Silver Prices Drop as Stronger Dollar Pressures Metals
Gold and silver prices declined on Tuesday, extending losses from the previous session as a firmer U.S. dollar weighed on precious metals. Investors remained cautious ahead of several key U.S. economic reports scheduled for release this week.
At 12:25 ET (17:25 GMT), spot gold fell 2.7% to $4,858.76 per ounce. April gold futures dropped 3.4% to $4,877.10 per ounce.
Silver experienced even sharper losses. Spot silver plunged 5% to $72.789 per ounce, while platinum fell 3.2% to $2,010.25 per ounce.
Volatility Intensifies in Precious Metals
According to David Morrison, senior market analyst at Trade Nation, gold had already been trending lower during Monday’s session, slipping below the $5,000 level before selling pressure accelerated in Asian trading.
Prices briefly approached $4,850 before buyers stepped in.
Morrison noted that silver once again displayed more dramatic price swings than gold. While recent volatility has been less extreme than the historic correction seen earlier this year, silver continues to show large intraday movements as traders search for clear support and resistance levels.
Limited Safe-Haven Demand Despite Middle East Tensions
Geopolitical developments offered little support to precious metals. Bloomberg reported that the United States and Iran made progress in nuclear negotiations held in Geneva, Switzerland.
Iran’s Foreign Minister Seyed Abbas Araghchi said a general agreement on guiding principles had been reached.
The talks come amid heightened military tensions in the Middle East. The U.S. has deployed two aircraft carriers and additional warships to the region in recent weeks. Meanwhile, Iran launched military drills in the Strait of Hormuz.
Despite these developments, safe-haven demand for gold remained subdued. Investors appear cautious following the sharp price correction seen since late January.
Key U.S. Data and Fed Minutes in Focus
Market attention is now centered on upcoming U.S. economic data and the release of the Federal Reserve’s January meeting minutes on Wednesday.
Industrial production figures are due midweek, while Friday brings the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred measure of inflation — along with the preliminary estimate of fourth-quarter U.S. GDP growth.
Uncertainty surrounding U.S. monetary policy has weighed heavily on gold prices in recent weeks. The pressure intensified after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair.
Warsh is widely viewed as less dovish on interest rates. His nomination contributed to profit-taking across metal markets after gold and silver reached record highs earlier this year during a speculative surge.
With inflation data and central bank signals ahead, precious metals remain highly sensitive to both economic releases and shifts in monetary policy expectations.
