(RTTNews) – Gold extended losses to dip toward $4,900 an ounce on Tuesday, pressured by easing geopolitical tensions and a stronger dollar.
Spot gold fell 1.4 percent to $4,921.11 an ounce while U.S. gold futures were down 2.1 percent at $4,941.90.
The U.S. and Iran will resume talks in Geneva today to address their nuclear dispute.
U.S. President Donald Trump has already threatened military action if the talks fail.
“I do not think they will want the consequences of the agreement failing. These talks are very important. I will also participate indirectly in the talks,” Trump said.
Iran conducted naval drills near the Strait of Hormuz as the U.S. 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 fresh round of U.S.-mediated peace talks.
The talks will be held in a trilateral format involving representatives from Russia, the United States, and Ukraine.
The dollar rose to a near one-week high against a basket of currencies ahead of key U.S. economic data due this week.
Later in the day, ADP employment numbers and NY Empire State Manufacturing Index could give fresh insights into the U.S. economy ahead of this week’s fourth-quarter GDP numbers.
The minutes from the Fed’s January meeting on Wednesday will provide a fresh read on the world’s largest economy.
Beyond the data, traders are likely to monitor speeches from Fed Governor Michael Barr and San Francisco Fed President Mary Daly for additional clues on the Fed’s policy stance.
According to the CME FedWatch Tool, the chances of a Fed rate cut in March and June now stand at 9.8 percent and 69.4 percent, respectively.
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