Bloomberg reported that gold extended its decline below $4.000 per ounce, falling up to 1.8% to $3.943 — the lowest intraday level since November — after having weakened almost 2% in the previous session, as the US and Iran sent conflicting signals ahead of new talks to end the war.

Washington said talks with Tehran would begin Tuesday in Doha, while Iran's foreign ministry said via Telegram that it would send a delegation of experts but rejected direct talks. Iran's Deputy Foreign Minister Kazem Gharibabadi said Tehran intends to continue monitoring traffic through the Strait of Hormuz, a move opposed by the US, Europe, and Gulf Arab states.
Gold has lost about 25% since the war began in late February, breaking through key technical levels including the 200-day moving average. Although oil prices have retreated, expectations remain that central banks will keep interest rates higher for longer, thereby creating pressure on the precious metal that yields no returns.
A stronger dollar has added further pressure, with the dollar index strengthening more than 2% this month.
"Although the easing of geopolitical tensions and lower oil prices could help alleviate inflation risks, the market is clearly placing greater weight on the renewed expectations of higher US interest rates and a stronger dollar in the second half — both increase the opportunity cost of holding gold," said Hebe Chen, an analyst at Vantage Markets in Melbourne.