Gold and silver prices fell on Tuesday, extending losses from the prior session as metal markets remained on edge ahead of more key U.S. economic cues due this week.

Anticipation of upcoming negotiations between the U.S. and Iran, over Tehran’s nuclear program, also kept markets on edge. 

Market holidays in China and the U.S. made for sluggish trading volumes, while a mild increase in the dollar weighed on metal prices.

Spot gold fell 1.9% to $4,898.51 an ounce, while gold futures for April fell 2% to $4,916.66/oz by 01:22 ET (06:22 GMT). 

Spot silver slid nearly 3% to $74.4875/oz, while spot platinum fell 0.7% to $2,007.43/oz. 

US, Iran head for nuclear talks in Geneva

U.S. and Iranian officials are set to meet in Geneva, Switzerland, on Tuesday, to discuss their long-running dispute over Tehran’s nuclear plans. 

The talks come amid heightened military tensions in the Middle East, as the U.S. mobilizes more of its forces in the region. U.S. President Donald Trump has repeatedly threatened military action against Iran if it does not accept a U.S. deal.

Trump told reporters on Monday he would be indirectly involved in the talks, and that he believed Iran wanted a deal. 

The U.S. deployed two major aircraft carriers and several warships to the Middle East in recent weeks, keeping tensions high. Iran in turn began a military drill in the Strait of Hormuz this week. 

Still, precious metals saw little safe haven demand from heightened tensions in the Middle East. This was in part due to investors remaining largely cautious towards the sector after a major price wipeout since late-January. 

US data, Fed minutes awaited this week

Focus this week is squarely on a host of upcoming economic readings from the U.S., as well as the minutes of the Federal Reserve’s January meeting, which are due on Wednesday.

Industrial production data is due on Wednesday, while PCE price index data– which is the Fed’s preferred inflation gauge– is due on Friday. 

The latter will be closely watched for more cues on the path of inflation and interest rates. 

Uncertainty over U.S. monetary policy was a key weight on gold in recent weeks, especially after President Donald Trump nominated Kevin Warsh as the next Chairman of the Fed.

Warsh was viewed as a less dovish pick, with his nomination sparking deep losses in metal markets, as traders also collected profits after a speculative frenzy drove gold and precious metal prices to new peaks in January. 

Recent inflation and labor data provided mixed cues on the world’s largest economy, with inflation cooling slightly in January, while employment picked up. 

The dollar caught some bids in holiday-thinned trading on Monday, pressuring commodity prices.