During Asian trading hours on Tuesday, spot gold prices fell notably as traders assessed the prospects of a negotiated resolution to the Iran conflict. The conflict has disrupted global energy supplies and heightened inflation risks.

Spot gold dropped below the $4,800 per ounce mark, following a 0.2% decline in the previous trading session. The price is currently near $4,788 per ounce, down more than $30 for the day, after earlier hitting a low of $4,785.77.

On the evening of April 20 local time, White House Press Secretary Karoline Leavitt stated in an interview with Fox News that the United States and Iran are on the "brink" of reaching an agreement. Leavitt remarked that the U.S. has "never been closer to a genuinely good deal," but did not disclose any details regarding the current status of the negotiations.

She added that even if an agreement is not reached, President Donald Trump has multiple options and is not hesitant to use them, citing previous actions as proof that he is not "bluffing."

Bloomberg reported on Tuesday, citing informed sources, that U.S. Vice President JD Vance is heading to Pakistan for the next round of talks. An Iranian delegation is also expected to participate, though Tehran had previously expressed hesitation about joining.

President Trump indicated that a two-week ceasefire is set to expire by "Wednesday evening, Washington time" and is unlikely to be extended.

Oil prices also declined on Tuesday, following a retreat in U.S. stock markets from record highs on Monday. The Middle East conflict, now in its eighth week, has triggered an unprecedented energy supply shock, amplifying inflationary pressures and increasing the likelihood that central banks will maintain or even raise interest rates—a negative factor for non-yielding assets like gold.

Since the conflict escalated in late February, gold prices have fallen by approximately 8%.

Marc Loeffert, a trader at Heraeus Precious Metals GmbH, noted in a report that the recent decline in gold amid the conflict does not alter the "fundamental logic" of the metal. He stated, "Some position adjustments and deleveraging are to be expected during periods of heightened cross-asset volatility. This volatility may persist for some time, but over the long term, gold will retain its fundamental appeal as a store of value."

Investors are also focusing on President Trump's nominee for Federal Reserve Chair. Later on Tuesday, Kevin Warsh is scheduled to present his policy plans before the Senate Banking Committee.

Any indication that Warsh may advocate for monetary easing this year could support gold prices. Conversely, if he expresses greater concern about inflation and reluctance to cut interest rates, it would likely weigh on gold.

According to a copy of his prepared remarks obtained by Bloomberg, Warsh will pledge to uphold the independence of the Federal Reserve in response to market concerns about its future direction.