Gold prices fell on Tuesday as traders weighed the chances of new peace talks between the U.S. and Iran before a ceasefire deadline expires later this week.
Spot gold dropped around 0.8% to $4,782 an ounce by mid-morning London time. Gold futures also fell, losing about 0.6% to trade near $4,802 an ounce.
A stronger U.S. dollar was one reason for the drop. When the dollar rises, gold becomes more expensive for buyers using other currencies, which tends to reduce demand.
The ceasefire between the U.S. and Iran, announced by President Donald Trump on April 7, is due to expire on Wednesday evening Washington time. Trump said the truce is unlikely to be extended.
Both sides have sent mixed messages about whether fresh talks will happen. Trump said Vice President JD Vance is prepared to travel to Islamabad for negotiations. Iran has not confirmed who, if anyone, will make the trip from Tehran.
The U.S. delegation heading to Pakistan is taking shape. Here's who's going:
– JD Vance: helped secure both the U.S.-Iran and Israel-Lebanon ceasefires. Iran reportedly prefers dealing with him over other U.S. officials
– Steve Witkoff: Trump's longtime friend, helped… https://t.co/Dm60OFa0Ol pic.twitter.com/Nndvow5xnY— Mario Nawfal (@MarioNawfal) April 21, 2026
Pakistan has been acting as a mediator between Washington and Tehran. The conflict began in late February with joint U.S. and Israeli strikes on Iran.
The Strait of Hormuz, through which roughly one-fifth of the world’s oil flows, has been largely closed since the war began. It briefly reopened to commercial shipping on Friday but was shut again over the weekend.
Higher oil prices are feeding inflation concerns around the world. That matters for gold because rising inflation can push central banks to hold or raise interest rates. Higher rates tend to hurt non-yielding assets like gold.
Gold has lost about 10% of its value since the conflict started in late February. Silver also fell on Tuesday, dropping 1.2% to $78.80 an ounce. Platinum and palladium declined as well.
Commodity analyst Manav Modi said markets are “on edge” over whether talks will happen before the ceasefire ends, with “conflicting signals from both sides adding to volatility.”
Investors were also watching the Senate Banking Committee hearing for Kevin Warsh, Trump’s pick to lead the Federal Reserve. Warsh was set to testify at 10 a.m. ET.
Trump has repeatedly pushed for lower interest rates. Warsh has voiced support for that position but has also criticized the Fed’s asset purchases and called for a smaller balance sheet.
In prepared remarks, Warsh said he would protect the Fed’s independence from political pressure.
Gold and other precious metals fell sharply after Warsh’s nomination was announced in late January.
Warsh’s confirmation could be delayed. Jerome Powell’s term as Fed Chair ends in May, but several lawmakers have called for him to remain while a government investigation into Powell and the Fed continues. Critics have called that probe an attempt to pressure the central bank.
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