Gold prices fell ahead of FOMC minutes, as easing geopolitical tensions and a stronger US dollar weighed on bullion markets on Tuesday.
Spot gold dropped 0.8% to $4,953.90 per ounce after losing 1% earlier in the session. Meanwhile, US gold futures for April delivery declined 1.5% to $4,972.90 per ounce.
Analysts said the pullback reflects reduced safe-haven demand. “It is not really going very far because it doesn’t look like the geopolitical risk is expanding,” said Ilya Spivak, head of global macro at Tastylive.
Investors are now focused on the Federal Reserve’s January meeting minutes, due Wednesday. Market participants expect the document to provide insight into the central bank’s policy direction.
According to CME’s FedWatch Tool, traders currently anticipate the first US interest rate cut in June. Because gold does not yield interest, it tends to perform better when rates are low.
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At the same time, the US dollar index rose 0.2% against a basket of currencies. A stronger dollar makes gold more expensive for holders of other currencies, which can reduce demand.
Geopolitical developments also influenced market sentiment. US President Donald Trump said he would be involved “indirectly” in talks between Iran and the United States over Tehran’s nuclear programme in Geneva.
In addition, representatives from Ukraine and Russia are meeting in Geneva for US-mediated peace talks. Easing tensions can reduce the appeal of gold as a safe-haven asset.
Spivak noted that gold faces technical resistance near $5,120, with previous highs around $5,600 serving as a longer-term reference point. Meanwhile, spot silver fell 1.6% to $75.33 per ounce after dropping more than 3% earlier in the session.
