What happened: Gold (GC=F) futures tumbled more than 2% on Tuesday while silver (SI=F) fell 3%.

What’s behind the move: Precious metals were under pressure as investors priced in the possibility of elevated interest rates remaining in place for longer, with policymakers seeking to curb inflation fueled by rising oil prices.

Read more: How much gold would $1 million buy at different points in history?

The US and Iran appear to be at an impasse in negotiations amid ongoing tensions in the Middle East. International oil prices (BZ=F) hovered near $104 per barrel while US futures (CL=F) traded near the $100 mark.

What else you need to know: Gold has been volatile since the start of the Iran war on Feb. 28. Higher energy costs have delayed expectations for interest rate cuts from the Federal Reserve. Higher interest rates tend to weigh on precious metals, which offer no yield and therefore become less competitive against income-generating assets like bonds.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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