Gold and silver prices extended their losses on Tuesday as a stronger U.S. dollar pressured precious metals and investors turned cautious ahead of major U.S. economic data releases. Reduced trading activity during China’s Lunar New Year also dampened demand, adding further downside pressure to bullion markets.
At 17:26 ET (22:26 GMT), spot gold dropped 2.3% to $4,877.40 per ounce, while April gold futures declined 3% to $4,896.10 per ounce. Spot silver led losses, sliding 4% to $73.5390 per ounce. Platinum prices also weakened, with spot platinum falling 2.7% to $2,020.60 per ounce.
Market analysts noted that gold prices have slipped below the key $4,900 level, while silver has fallen under $75 per ounce amid softer physical demand in Asia. According to Ralph Aldis, portfolio manager at U.S. Global Investors, uncertainty remains over whether precious metals will see further downside or if investors will treat the pullback as a buying opportunity. Societe Generale estimates that China may have accumulated up to 250 tons of gold in 2025 based on trade flows, accounting for over one-third of global central bank demand. Continued Chinese gold purchases into 2026, along with expectations of further U.S. interest rate cuts and increased federal spending, could offer longer-term support for bullion.
Meanwhile, geopolitical tensions provided limited safe-haven support. Reports indicated that the U.S. and Iran made progress in nuclear talks in Geneva, reaching a general agreement on guiding principles. Despite heightened military activity in the Middle East, investors largely remained focused on monetary policy and economic indicators.
Attention now shifts to upcoming U.S. economic data, including industrial production figures, Federal Reserve meeting minutes, the PCE price index, and preliminary fourth-quarter GDP data. Ongoing uncertainty surrounding U.S. monetary policy, especially following President Donald Trump’s nomination of Kevin Warsh as the next Fed Chair, continues to influence gold market sentiment.


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