Gold Prices Drop Amidst Strong Dollar and Geopolitical Tensions

Gold prices experienced a significant drop on Tuesday, influenced by a robust dollar and ongoing geopolitical uncertainties. Investors are closely observing developments in international diplomacy and the Federal Reserve's monetary policy decisions.

The spot price of gold fell by 1.5% to $4,918.65 per ounce in the morning session, with U.S. futures for April delivery also declining by 2.2% to $4,937 per ounce. The U.S. dollar index, rising by 0.2%, has made greenback-priced gold more costly for international investors.

Amidst the backdrop of U.S.-Iran talks and anticipated discussions between Ukrainian and Russian representatives, market sentiment remains cautious. Eyes are also on the Federal Reserve's January meeting minutes, expected to provide insights into future interest rate adjustments, potentially impacting gold's performance ahead.