Gold falls over 2% on Tuesday 

Gold dropped more than 2 per cent on Tuesday, pressured by holiday-thinned liquidity, a stronger dollar, and easing geopolitical tensions. Spot gold fell 1.5 per cent to $4,917.90 per ounce, hitting $4,862 at its lowest level in over a week, while US April gold futures lost 2.2 per cent to $4,936.60.

Markets in China, Hong Kong, Singapore, Taiwan, and South Korea were closed for Lunar New Year, and US markets were shut on Monday for Presidents’ Day, limiting buying support. The dollar index rose 0.3 per cent, making bullion costlier for holders of other currencies.

Investors are eyeing the Federal Reserve’s January meeting minutes due Wednesday for signals on future interest rate moves, with the market expecting the first of three cuts in June. Geopolitical developments, including US–Iran nuclear talks and Ukraine-Russia peace discussions, also weighed on safe-haven demand.

Spot silver fell 2 per cent to $75.05 per ounce, platinum dropped 1.5 per cent to $2,010.72, and palladium lost 1.9 per cent to $1,692.

Attribution: Reuters