Gold and Silver Retreat as Markets Eye U.S. Data and Iran Talks
Precious metals continued their slide on Tuesday, extending losses from the previous session as investors remained cautious ahead of a series of important U.S. economic reports later this week.
Concerns over upcoming negotiations between the United States and Iran regarding Tehran’s nuclear program added to market uncertainty.
Trading volumes were light, with holidays in both China and the U.S. contributing to subdued activity. A modest uptick in the U.S. dollar further pressured metal prices. Spot gold declined 1.9% to $4,898.51 per ounce, while April gold futures fell 2% to $4,916.66/oz by 01:22 ET (06:22 GMT). Spot silver dropped nearly 3% to $74.49/oz, and platinum edged down 0.7% to $2,007.43/oz.
U.S. and Iran Prepare for Nuclear Discussions in Geneva
Officials from the U.S. and Iran are scheduled to meet in Geneva, Switzerland, on Tuesday to address their ongoing dispute over Iran’s nuclear program. The diplomatic talks occur against a backdrop of heightened regional tensions, with the U.S. deploying additional naval assets to the Middle East.
President Donald Trump indicated on Monday that he would participate indirectly in the negotiations and expressed optimism that Iran is seeking an agreement. Recent weeks have seen the U.S. send two aircraft carriers and several warships to the region, while Iran has conducted military drills in the Strait of Hormuz. Despite these tensions, demand for safe-haven metals has remained muted, partly because investors are cautious following significant price corrections since late January.
Focus on U.S. Economic Data and Fed Minutes
Attention this week is also on a series of key U.S. economic indicators and the release of the Federal Reserve’s January meeting minutes on Wednesday. Industrial production figures are expected Wednesday, followed by the Personal Consumption Expenditures (PCE) price index on Friday, the Fed’s preferred measure of inflation. These reports will be closely monitored for insights into inflation trends and potential interest rate decisions.
Recent monetary policy uncertainty has weighed on gold. President Trump’s nomination of Kevin Warsh as the next Fed Chair, perceived as a less dovish choice, contributed to recent losses. Metals markets also retreated after a sharp rally in January, during which speculative buying pushed prices to new highs.
Mixed economic signals have added to market caution, with inflation cooling slightly in January, while employment figures showed improvement. A stronger dollar during holiday-thinned trading on Monday added further pressure on commodity prices.
