Khaberni - Gold prices continued to decline on Tuesday, influenced by the rise of the dollar and bond yields, as investors wait for the results of the talks between Washington and Tehran, in addition to a hearing session for Kevin Warsh, President Donald Trump's nominee for chairman of the Federal Reserve (central bank).
Gold fell in spot transactions by 2% to $4724.31 an ounce, by 16:28 GMT, marking the lowest level in more than a week.
The American futures contracts for gold for June delivery fell by 1.8% to $4743.50.
The dollar rose on Tuesday which increased the cost of goods priced in the American currency for holders of other currencies. The yields of the standard American treasury bonds for 10 years rose by more than 1%.
Bob Haberkorn, senior market analyst at R.J.O. Futures, said "the rising yields and strength of the dollar pressurize gold, alongside many news and contradictory statements regarding the situation in Iran, which are driving energy prices higher, thereby exerting pressure on metal prices."
Although gold is seen as a hedge against inflation, this asset, which yields no return, is under pressure with rising interest rates.
Trump said on Tuesday that he does not wish to extend the ceasefire that ended with Iran, and that the American military is "on alert" in case the negotiations collapse.
Crude oil prices jumped by more than 3% as the movement in the Strait of Hormuz remains largely halted.
Oil prices soared after the United States and Israel waged war on Iran on February 28, fueling fears of a sharp surge in inflation.
Meanwhile, investors are focused on a session held by the Senate Banking Committee regarding the confirmation of Kevin Warsh as the chairman of the Reserve.
For other precious metals, silver in spot transactions dropped 4% to $76.63 an ounce, platinum fell 2.6% to $2035, and palladium lost 0.6% to $1538.78.
