Gold investors have been dealt another setback as peace talks between the U.S. and Iran broke down. President Donald Trump cancelled a trip by special envoy Steve Witkoff and senior adviser Jared Kushner to Pakistan, where they were scheduled to lead a second round of negotiations to end the U.-Iran war. The news led to an 11% drop in gold in a single March week, marking its worst stretch since 1983. This drop was immediately followed by a rise in crude oil prices, which pushed the dollar towards $100 a barrel. Gold's decline is attributed to the rise in Treasury bond yields, which offer investors a safer alternative. The Federal Reserve has less room to cut interest rates due to the high level of inflation. Despite this, the gold outlook has been shifted to the downside due to concerns of another oil spike that could lift the dollar and bond yields.