Gold Prices Decline Amid U.S.-Iran Progress and Stronger Dollar

Gold prices dropped over 2% as U.S.-Iran talks showed signs of progress, reducing safe-haven demand. A stronger U.S. dollar further pressured gold, with futures dropping 2.8%. Investors watch for Federal Reserve meeting minutes for interest-rate cues. The easing tensions could negatively impact metals like silver as well.

On Tuesday, gold prices tumbled more than 2% in response to progress in U.S.-Iran negotiations, dampening demand for safe-haven assets, while a rising dollar compounded selling pressures.

Spot gold decreased by 2.2%, settling at $4,884.46 per ounce, and U.S. gold futures for April plunged 2.8% to $4,905.90 per ounce. A 0.3% uptick in the U.S. dollar index further prompted gold's decline as it increased bullion costs for overseas buyers.

Iran and the U.S. agreed on basic 'guiding principles' to address their nuclear disagreement, though a deal is not imminent, according to Iranian Foreign Minister Abbas Araqchi. The news, alongside ongoing Russia-Ukraine peace talks, could further lessen metal market worries.

(With inputs from agencies.)