Mumbai, Mar 24: Gold prices continued their downward trend on Tuesday, slipping over 1% and marking a tenth consecutive session of losses as a stronger U.S. dollar and reduced expectations of near-term Federal Reserve rate cuts dampened investor sentiment.
Spot gold declined 1.6% to $4,335.18 per ounce in early trade, after touching its lowest level since late November in the previous session. U.S. gold futures for April delivery also dropped by a similar margin to $4,336.10.
The strengthening dollar made bullion more expensive for holders of other currencies, reducing its appeal globally. Analysts pointed out that rising interest rate expectations, driven by concerns that the ongoing Iran conflict could stoke inflation, have pushed central banks toward a more hawkish stance—further pressuring gold.
Since the escalation of tensions in late February, gold prices have fallen sharply, with the dollar emerging as a preferred safe-haven asset in volatile markets.
Geopolitical developments remain in focus, with Iran denying any direct negotiations with the United States despite reports of possible diplomatic efforts. Talks to ease the conflict could take place soon, according to sources, though uncertainty continues to influence global markets.
Meanwhile, oil prices remained elevated above $100 per barrel, raising inflation concerns. While gold typically benefits as an inflation hedge, higher interest rates reduce its attractiveness due to its non-yielding nature.
In other precious metals, silver dropped nearly 3%, while platinum and palladium also recorded losses of over 2%, reflecting broader weakness across the segment.