Gold Prices Dip Amid Easing Tensions and Stronger Dollar

Gold prices fell as geopolitical tensions in Iran and Russia eased, and the stronger dollar impacted investor behavior. With anticipation around the Federal Reserve's January meeting minutes, gold futures saw declines. Non-yielding bullion could benefit from expected low-interest rates. Silver and platinum prices also experienced drops.

Gold prices continued to decline on Tuesday, pressured by easing geopolitical tensions in Iran and Russia alongside a stronger dollar. Investors are keenly anticipating the minutes from the January Federal Open Market Committee (FOMC) meeting set to release later this week.

Spot gold fell 0.8% to $4,953.90 per ounce by early morning trading, after an earlier 1% drop. U.S. gold futures for April delivery fell 1.5% to $4,972.90 per ounce, reflecting caution among investors. Despite current dips, analysts suggest critical market indicators, like the FOMC minutes, could signal gold price directions.

The U.S. dollar index rose 0.2% against a basket of currencies, impacting the cost of dollar-denominated bullion for international buyers. Meanwhile, silver, platinum, and palladium also recorded price declines as metal markets reacted to broader economic signals and geopolitical developments.

(With inputs from agencies.)