Gold prices drop over 2% as US-Iran talks progress and dollar strengthens

Gold prices experienced a significant drop of more than 2% on February 17, 2026, driven by progress in the ongoing US-Iran nuclear negotiations and the strengthening of the US dollar. Reuters reported that spot gold dropped by 2.2%, reaching $4,884.46 per ounce at 1:30 PM US Eastern Time (6:30 PM GMT). Meanwhile, US gold futures for April delivery fell 2.8%, settling at $4,905.90 per ounce. The US Dollar Index (DXY) also rose by 0.3%, making gold more expensive for foreign buyers.

Jim Wyckoff, a senior analyst at Kitco Metals, highlighted that the gold and silver markets lack positive fundamental news to push prices higher. The reduction in demand for safe-haven assets like gold is linked to easing market concerns as US-Iran tensions appear to lessen, with potential diplomatic breakthroughs. Additionally, the easing of geopolitical worries in the Russia-Ukraine conflict also contributed to the pressure on gold prices.

The US-Iran talks reached a preliminary understanding, focusing on "guiding principles" for resolving the protracted nuclear dispute. While this progress indicates a potential de-escalation, Abbas Araghchi, Iran's foreign minister, clarified that a final deal is still far from being reached. Meanwhile, talks between Ukraine and Russia in Geneva, mediated by the US, are expected to continue in hopes of reaching a peace agreement.

Investors are also awaiting key economic reports, including the US Federal Reserve’s January meeting minutes, set to be released on Wednesday, February 18, and the December US Personal Consumption Expenditures (PCE) report on Friday, February 20. These reports will provide clues on the Fed's future interest rate policies. The market anticipates the first rate cut of 2026 to occur in June.

Gold, which does not provide interest income, typically performs well in low-interest-rate environments, but the current economic conditions are creating uncertainty for the precious metals market. Meanwhile, silver prices plunged by 4.1%, reaching $73.47 per ounce, after falling to a low of $71.92 at the start of trading. Platinum dropped 1.3%, settling at $2,017.06 per ounce, and palladium saw a 3.1% drop to $1,670.25 per ounce.