Gold Prices Tumble: Holidays and Dollar Surge Wreak Havoc

Gold prices experienced a significant drop of over 2% on Tuesday, as holidays in major global markets dampened trading activity, while a stronger U.S. dollar exerted additional downward pressure.

The spot price of gold dropped to $4,917.90 per ounce at 0800 GMT after reaching its lowest in over a week. The rigid market conditions stemmed from market closures across Mainland China, Hong Kong, Singapore, Taiwan, and South Korea due to the Lunar New Year holidays, alongside U.S. markets being closed on Monday for Presidents' Day. Analysts point to heightened interest rate speculation ahead of the Federal Reserve's meeting minutes release on Wednesday.

Geopolitical developments also influenced gold prices. U.S. President Trump announced his indirect involvement in the U.S.–Iran nuclear talks taking place in Geneva, alongside peace discussions between Ukraine and Russia. This environment of anticipation and uncertainty has contributed to the volatility surrounding the precious metal.