(RTTNews) – Gold prices fell to $4,900 an ounce on Tuesday under pressure from easing geopolitical tensions and a stronger dollar.
Spot gold fell 1.4 percent to $4,921.11 an ounce, while US gold futures were down 2.1 percent at $4,941.90.
The US and Iran will resume talks in Geneva today to resolve their nuclear dispute.
US President Donald Trump has already threatened military action if talks fail.
Trump said, “I don’t think they would want the consequences of a failure to reach an agreement. These negotiations are very important. I will also indirectly participate in the negotiations.”
Iran conducted naval exercises near the Strait of Hormuz as the US military continued a significant buildup of air and naval assets in the Middle East.
Representatives of Ukraine and Russia will also meet in Geneva today and tomorrow for a new round of US-brokered peace talks.
The talks will take place in a trilateral format involving representatives of Russia, the United States and Ukraine.
The dollar rose to its highest level in nearly a week against other currencies ahead of key US economic data this week.
Later in the day, ADP employment numbers and the NY Empire State Manufacturing Index could give new insights into the US economy ahead of this week’s fourth quarter GDP data.
Minutes from the Fed’s January meeting on Wednesday will provide an update on the world’s largest economy.
In addition to the data, traders are likely to keep an eye on speeches from Fed Governor Michael Barr and San Francisco Fed Chairwoman Mary Daly for additional clues on the Fed’s policy stance.
According to the CME FedWatch tool, the probability of a Fed rate cut in March and June is now 9.8 percent and 69.4 percent, respectively.
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