Gold Prices Dive Amid US-Iran Progress and Strengthening Dollar

Gold suffered a sharp decline of over 2% on Tuesday, losing its luster as a haven, with US-Iran diplomacy showing signs of progress. The development, coupled with a strengthening dollar, contributed to the precious metal's slump.

Spot gold was down 2.2%, reaching $4,883.85 an ounce by mid-morning, while US gold futures for April delivery fell even further, by 2.9%, to $4,900.80. The upward movement of 0.5% in the US dollar index made gold more expensive for international buyers, dampening demand.

Adding to the pressure on gold, representatives from Russia and Ukraine convened in Geneva for peace talks mediated by the United States. Analysts predict that any easing in geopolitical tensions would further reduce market anxiety, negatively impacting gold and silver prices.