Spot gold declined 1.5 percent to $4,340.63 per ounce as of 0418 GMT, marking a loss of roughly 22 percent over the past ten sessions. In the previous session, prices dipped to $4,097.99, the lowest level since November 24, before recovering slightly. U.S. gold futures for April delivery fell 1.5 percent to $4,340.90.
The strengthening dollar has made dollar-denominated bullion more expensive for holders of other currencies, further pressuring gold. “Markets are pricing in interest rate hikes, reasoning that the war in Iran will drive inflation. That global central banks will turn more hawkish as a result has been pushing gold lower,” said Ilya Spivak, head of global macro at Tastylive.
For technical traders, immediate support levels for gold are seen at $4,275 and $4,000 per ounce, while resistance is around $4,650 and $4,840, Spivak added.
Since the outbreak of the U.S.-Israeli-Iran conflict on February 28, spot gold has fallen roughly 18 percent, with the dollar emerging as a key safe-haven beneficiary. Diplomatic developments remain closely watched: Iran denied any ongoing negotiations with the U.S. after President Donald Trump postponed threats to target Iran’s power grid, citing productive talks with unnamed Iranian officials. Reports indicate that direct talks may occur in Islamabad as early as this week.
Meanwhile, oil prices remain above $100 per barrel, as Tehran continues to deny discussions on ending the conflict. Rising crude prices typically fuel inflation by increasing transportation and manufacturing costs. While higher inflation can support gold as a hedge, elevated interest rates limit demand for the non-yielding metal.
Other precious metals also declined on Tuesday: spot silver fell 3.4 percent to $66.80 per ounce, platinum dropped 2.1 percent to $1,841.68, and palladium lost 2.7 percent to $1,395.25.
Investors have also pared bets on a December Fed rate hike, with CME Group’s FedWatch tool showing odds dropping to around 13 percent from just above 25 percent in the prior session, reflecting shifting expectations in U.S. monetary policy.