On Tuesday, gold saw a drop of 1%, with trading remaining quiet in major Asian markets due to the Lunar New Year holidays, compounded by the influence of a rising dollar. Spot gold fell 0.9% to $4,947.98 per ounce by 0110, after a 1% drop earlier in the session. U.S. gold futures for April delivery fell by 1.6% to $4,966.80 per ounce. The U.S. dollar index rose by 0.2% against a range of currencies, leading to increased expenses for bullion priced in dollars for holders of other currencies.

The markets in Mainland China, Hong Kong, Singapore, Taiwan, and South Korea are currently closed for the Lunar New Year holidays. The U.S. markets were shut down on Monday in recognition of Presidents’ Day. Markets are currently expecting three reductions of 25 basis points in interest rates by the U.S. Federal Reserve this year, as indicated. Non-yielding bullion usually does well in settings with low interest rates.

In a statement on Monday, U.S. President Donald Trump expressed his desire to be “indirectly” involved in the forthcoming discussions between Iran and the U.S. concerning Tehran’s nuclear program, set to take place on Tuesday in Geneva. He conveyed his view that Tehran seems eager to come to an agreement. Meanwhile, Iran’s foreign minister held talks with the U.N. nuclear watchdog chief on Monday, in preparation for negotiations between Washington and Tehran aimed at resolving a nuclear dispute.

Nonetheless, there are few signs of compromises from either side, coupled with the ongoing threat of possible U.S. military involvement. Spot silver fell by 2.7% to $74.51 per ounce, after experiencing a drop of over 3% earlier in the session. Spot platinum decreased by 0.8% to $2,025.05 per ounce, while palladium dropped by 1.5% to $1,698.10.