Spot gold fell 0.6% to $4,681.39 per ounce and futures dropped 1% to $4,694.61 amid this diplomatic setback.
Investors await Wednesday’s Fed meeting, widely expected to keep rates unchanged, possibly Powell’s final decision before his May 15 term end.
US‑Iran negotiations stalled after Iran left Pakistan and the US cancelled a delegation, though Iran offered to reopen the Strait of Hormuz.
Higher oil prices from the Hormuz closure raise inflation concerns, prompting a slight dollar weakening and reducing demand for dollar‑denominated gold.