PRECIOUS-Gold slides more than 2% on progress in US-Iran talks, firmer dollar

By Anmol Choubey

Feb 17 (Reuters) - Gold fell more than 2% on Tuesday, as signs of progress in U.S.-Iran talks dampened safe-haven demand, while a stronger dollar added to the selling pressure.

Spot gold XAU= fell 2.2% to $4,883.85 per ounce by 11:33 a.m. ET (1633 GMT). U.S. gold futures GCcv1 for April delivery declined 2.9% to $4,900.80 per ounce.

The U.S. dollar index .DXY rose 0.5% against a basket of currencies, making bullion priced in the currency more expensive for overseas buyers. USD/

"Bull markets need to be fed fresh fundamental fodder often, and with the gold and silver markets, there's been a lack of fresh bullish fundamental news lately to drive prices still higher," said Jim Wyckoff, senior analyst at Kitco Metals.

UNDERSTANDING ON 'GUIDING PRINCIPLES'

Iran and the United States reached an understanding on Tuesday on main "guiding principles" in talks aimed at resolving their longstanding nuclear dispute, but that does not mean a deal is imminent, Iranian Foreign Minister Abbas Araqchi said.

Negotiators from Ukraine and Russia also gathered in Geneva for two days of U.S.-mediated peace talks.

Wyckoff said the talks underlined the negatives for gold and silver.

"If the U.S. can avoid attacking Iran, market anxiety would ease and that would be negative for safe-haven gold and silver, and same applies to the Russia‑Ukraine talks," he added.

Investors are awaiting the minutes from the Federal Reserve's January meeting, due on Wednesday, and the U.S. Personal Consumption Expenditures report for December, due on Friday, for cues on the central bank's interest-rate outlook. Markets anticipate the first rate cut of the year to be in June. FEDWATCH

Non-yielding gold tends to do well in low-interest-rate environments.

Many Asian markets were closed on Tuesday for the Lunar New Year holidays, including mainland China, Hong Kong, Taiwan, South Korea and Singapore.

Spot silver XAG= fell 3.8% to $73.67 per ounce, after dropping as low as $71.92 earlier in the session.

Spot platinum XPT= was down 1.2% at $2,016.50 per ounce, and palladium XPD= lost 2.1% to $1,687.97.