Gold Pulls Back Sharply As U.S. Dollar Strengthens

(RTTNews) - Gold prices have moved sharply lower during trading on Tuesday, more than offsetting the rebound seen during last Friday's session.

After surging $97.90 or 2 percent to $5046.30 an ounce during the previous session, gold for April delivery has plunged $134.70 or 2.7 percent to $4,911.60 an ounce an ounce.

The sharp pullback by the price of gold comes amid an increase in the value of the U.S. dollar. The U.S. dollar index has pulled back off its highs but remains up by 0.3 percent.

Easing geopolitical concerns also weighed on gold, as the U.S. and Iran will resumed talks in Geneva to address their nuclear dispute. U.S. President Donald Trump has threatened military action if the talks fail.

"I do not think they will want the consequences of the agreement failing. These talks are very important. I will also participate indirectly in the talks," Trump said.

Iran conducted naval drills near the Strait of Hormuz as the U.S. military continued a significant buildup of air and naval assets in the Middle East.

Representatives of Ukraine and Russia will also meet in Geneva today and tomorrow for a fresh round of U.S.-mediated peace talks.

The talks will be held in a trilateral format involving representatives from Russia, the United States, and Ukraine.