Gold Loses Over 1% as Dollar Firms, Fed Cut Hopes Fade

By Noel John

March 24 (Reuters) - Gold prices fell more than 1% on Tuesday, extending their slide to a tenth straight session, pressured by a firm U.S. dollar and fading hopes for near-term Federal Reserve interest rate cuts.

Spot gold XAU= fell 1.6% to $4,335.18 per ounce, as of 0227 GMT. The metal fell to its lowest level since November 24 on Monday.

U.S. gold futures GCcv1 for April delivery fell 1.6% to $4,336.10.

The dollar strengthened, making greenback-priced bullion more expensive for holders of other currencies. USD/

Prices are down "as markets continued to drive up interest rates, reasoning that the war in Iran will drive inflation. That global central banks will turn more hawkish as a result has been pushing gold lower," said Ilya Spivak, head of global macro at Tastylive.

Spot gold prices have fallen about 18% since the U.S.-Israeli war on Iran started on February 28, with the dollar emerging as one of the clearest safe-haven winners.

On Monday, Iran denied any negotiations with the United States after President Donald Trump postponed a threat to bomb Iran's power grid, citing what he described as productive talks with unnamed Iranian officials.

A Pakistani official and a second source told Reuters that direct talks to end the conflict could take place in Islamabad as early as this week.

Oil prices held above $100 a barrel after Tehran denied it had discussed ending the Middle East war with Washington. O/R

Higher crude prices tend to fuel inflation by pushing up transport and manufacturing costs. Although rising inflation typically boosts gold's appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.

For gold, the immediate support levels are at $4,275 and $4,000, while the resistance is seen at $4,650 and $4,840, said Spivak.

Spot silver XAG= lost 2.9% to $67.11 per ounce. Spot platinum XPT= fell 2.1% to $1,842.30 and palladium XPD= shed 2.1% at $1,403.76.