Gold falls 3.5% at settlement; silver extends losses

April gold futures dropped 3.53%, or $187.9, to settle at $5,123.7 per ounce

Gold and silver prices fell sharply at Tuesday’s close, pressured by a stronger dollar and fading expectations of Federal Reserve rate cuts amid rising inflation concerns as oil prices climb.

April gold futures dropped 3.53%, or $187.9, to settle at $5,123.7 per ounce.

March silver futures fell 6% to $82.92 per ounce, extending losses for a second straight session.

Precious metals came under pressure as the dollar strengthened since the outbreak of war in the Middle East, with investors flocking to the greenback in search of liquidity and hedging. The US currency competes with gold as a safe haven during major crises.

War-related fallout intensified after Iranian media reported that a Revolutionary Guard Corps official confirmed the closure of the Strait of Hormuz, while the United States continued shutting its embassies across the Middle East.