Gold prices fall amid firmer dollar ahead of key economic data this week

Gold and silver prices fell Tuesday, extending losses from the prior session, as a stronger dollar put pressure on precious metals. Investors also remained on edge ahead of more key U.S. economic data this week.

At 12:25 ET (17:25 GMT), Spot gold fell 2.7% to $4,858.76 an ounce, and gold futures for April fell 3.4% to $4,877.10/oz. 

Spot silver fared worse, sliding 5% to $72.789/oz, while spot platinum fell 3.2% to $2,010.25/oz.  

"Gold fell sharply overnight. It had drifted lower throughout Monday afternoon, falling back below $5,000 per ounce. But the selling accelerated during the Asian Pacific session with prices dropping towards $4,850 before buyers reemerged," David Morrison, senior market analyst at Trade Nation, said.

"It should not come as a surprise to anyone who has followed precious metals recently, that silver’s price action proved more extreme than gold’s," he said.

"While silver’s price swings have been less violent than the ones witnessed just a few weeks ago, that’s not really saying very much. Those were extraordinary circumstances as the price corrected following an epic multi-generational blow-off top. Now gold’s unruly sibling is doing what it is known for: exhibiting oversized intra-day volatility as traders knock it around as they attempt to find clear areas of support and resistance," Morrison added.

U.S., Iran make progress on ’potential’ deal

Bloomberg News reported on Tuesday that the U.S. and Iran had made headway in nuclear talks held in Geneva, Switzerland.

A "general agreement on a set of guiding principles" had been reached, Bloomberg said, quoting remarks made by Iran’s foreign minister Seyed Abbas Araghchi to state TV.  

The talks come amid heightened military tensions in the Middle East, as the U.S. mobilizes more of its forces in the region. President Donald Trump has repeatedly threatened military action against Iran if it does not accept a U.S. deal. 

The U.S. deployed two major aircraft carriers and several warships to the Middle East in recent weeks, keeping tensions high. Iran in turn began a military drill in the Strait of Hormuz this week. 

Still, precious metals saw little safe haven demand from heightened tensions in the Middle East. This was in part due to investors remaining largely cautious towards the sector after a major price wipeout since late-January. 

U.S. data, Fed minutes due

The focus this week is squarely on a host of upcoming economic readings from the U.S., as well as the minutes of the Federal Reserve’s January meeting, which are due on Wednesday.

Industrial production data is due on Wednesday, while PCE price index data – which is the Fed’s preferred inflation gauge – is due on Friday. On that same day, the preliminary estimate of U.S. Q4 GDP growth arrives.