PRECIOUS-Gold slips to one-week low as safe-haven demand cools, dollar strengthens

By Pablo Sinha

Feb 17 (Reuters) - Gold fell to a more than one-week low on Tuesday as a stronger dollar pressured prices, while investors awaited clarity on U.S.-Iran talks and cues on the Federal Reserve's policy outlook.

Spot gold XAU= fell 1% to $4,942.48 per ounce by 1226 GMT after losing more than 2% earlier in the session. U.S. gold futures GCcv1 for April delivery declined 1.7% to $4,961.80 per ounce.

The U.S. dollar index .DXY rose 0.3% against a basket of currencies, making the greenback-priced bullion more expensive for holders of other currencies. USD/

"Traders are currently in a wait-and-see mode... safe-haven demand has paused as markets await greater clarity from the U.S.–Iran talks, while expectations for the Federal Reserve’s rate path could be influenced by the release of the latest FOMC minutes," said ActivTrades analyst Ricardo Evangelista.

The U.S. and Iran will hold indirect nuclear talks in Geneva on Tuesday, with little clear indication of compromise as Washington amasses forces in the Middle East.

Meanwhile, Ukrainian and Russian representatives will meet in Geneva on Tuesday and Wednesday for U.S.-mediated peace talks.

Investors will also scrutinise minutes from the Fed's January meeting, due Wednesday, for fresh clues on its rate-cutting path.

"Against a backdrop of geopolitical and economic uncertainty, which is likely to support safe-haven demand over the medium to long term, and dovish expectations for the U.S. dollar, I see gold prices consolidating above the $5,000-level and extending their advance towards $6,000 as the year progresses," Evangelista added.

Mainland Chinese, Hong Kong, Singapore, Taiwan and South Korea markets are closed for the Lunar New Year holidays.

Spot silver XAG= fell 2% to $75.02 per ounce, after dropping over 5% earlier in the session.

Spot platinum XPT= fell 1.3% to $2,014.95 per ounce, while palladium XPD= lost 3% to $1,673.30.