Gold prices extended losses for the tenth straight session in Asian trading on Tuesday as Iran denied holding talks with the U.S. after President Donald Trump’s decision to postpone further strikes on Iran’s energy infrastructure.
Spot gold was last down 0.7% at $4,376.04 an ounce by 02:46 ET (06:46 GMT). U.S. Gold Futures slipped 0.6% to $4,413.59.
The yellow metal had plunged to a four-month low in the previous session, before paring some losses to settle 2% lower.
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Middle East strikes continue despite Trump’s negotiations claims President Trump on Monday postponed a threat to bomb Iran’s electricity grid, citing “very good and productive” talks with unidentified Iranian officials.
Washington’s decision against Iran helped calm broader markets and triggered a sharp pullback in oil prices, allowing gold to trim some losses in the previous session.
But Iran’s Speaker of the Parliament, Mohammad Baqer Qalibaf, said on social media that no such talks had taken place, creating uncertainty.
Iran launched multiple waves of missiles at Israel, the Israeli military said on Tuesday, highlighting no signs of de-escalation.
Gold extended losses on Tuesday as investors also continued to focus on the macroeconomic outlook, particularly interest rate expectations.
Gold has struggled despite its traditional role as a safe-haven asset during periods of geopolitical tension.
Precious metals pressured by strong dollar, Fed concerns
The precious metal had come under sustained pressure in recent sessions as a surge in energy prices heightened concerns that inflation could remain elevated.
This has led markets to scale back expectations for monetary easing, with investors increasingly betting that central banks, including the Federal Reserve, will keep interest rates higher for longer.
Higher interest rates typically weigh on gold, as the non-yielding asset becomes less attractive compared with interest-bearing instruments such as government bonds.
The US Dollar Index traded 0.4% higher on early Tuesday.
Among other precious metals, silver prices dipped 0.4% to $68.91/oz, while platinum edged down 0.3% to $1,883.05/oz.
Benchmark Copper Futures on the London Metal Exchange fell 1.4% to $12,022.33 a ton, while U.S.Copper Futures slipped 1.3% to $5.41 a pound.
