Gold prices declined by more than 1% on Tuesday, marking a tenth consecutive session of losses, as a stronger US dollar and diminishing expectations of near-term interest rate cuts by the Federal Reserve pressured the market.
Spot gold fell 1.6% to $4,335.18 per ounce as of 0227 GMT, after hitting its lowest level since November 24 in the previous session.
US gold futures for April delivery also dropped 1.6% to $4,336.10.
The strengthening dollar made goldāpriced in the greenbackāmore expensive for buyers using other currencies, reducing demand.
Prices are down āas markets continued to drive up interest rates, 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,ā said Ilya Spivak, head of global macro at Tastylive.
Spot gold has dropped roughly 18% since the US-Israeli conflict with Iran began on February 28, with the dollar emerging as a key safe-haven asset during the period.
On Monday, Iran rejected claims of negotiations with the United States after President Donald Trump delayed a threat to strike Iranās power grid, citing what he described as productive discussions with unnamed Iranian officials.
Sources told Reuters that direct talks aimed at ending the conflict could potentially take place in Islamabad as early as this week.
Meanwhile, oil prices remained above $100 per barrel after Tehran denied engaging in discussions with Washington to end the Middle East conflict.
Rising oil prices tend to increase inflation by driving up transportation and manufacturing costs. While inflation can boost goldās appeal as a hedge, higher interest rates typically reduce demand for the non-yielding metal.
Investors also reduced expectations for a December Federal Reserve rate hike to about 13%, down from just over 25% in the previous session, according to data from CME Groupās FedWatch tool.
For gold, the ā immediate support levels are at $4,275 and $4,000, while the resistance is seen at $4,650 and $4,840, said Spivak.
Among other precious metals, spot silver dropped 2.9% to $67.11 per ounce, while platinum declined 2.1% to $1,842.30 and palladium fell 2.1% to $1,403.76.
