Khaberni - Gold prices fell on Tuesday with the rise of the dollar, as investors wait to see if the United States and Iran will meet this week to conduct peace talks after tensions flared up again.
Spot gold fell 0.2 percent to $4807.91 per ounce by 0217 GMT, continuing its decline from the previous session when it recorded the lowest level since April 13. June futures in the US gold market settled at $4827.30.
The rise of the dollar increased the cost of commodities priced in the American currency for holders of other currencies.
Kyle Rodda, a financial markets analyst at Capital.com, said investors are now waiting for "the next major news about whether the talks will proceed in Islamabad, and if so, whether the ceasefire will be extended, or better yet, a peace agreement reached."
Rodda added, "If these events occur, gold is likely to receive strong support as oil prices would fall. If these events do not occur, we might start to see some of these volatilities return to the market."
Oil prices fell as investors reassessed supply risks amid expectations of peace talks between the United States and Iran this week, which would allow more crude to flow from the Middle East.
High oil prices exacerbate inflation by increasing transportation and production costs. Gold is considered a hedge against inflation, but rising interest rates increase the appeal of yield-bearing assets, reducing its attractiveness.
A senior Iranian official told Reuters on Monday that Iran is considering participating in peace talks in Pakistan, following efforts from Islamabad to end the American blockade.
The blockade poses a significant obstacle to Tehran's return to peace efforts, while the current two-week ceasefire is nearing its end.
The current two-week ceasefire in a conflict that has claimed thousands of lives and severely damaged the global economy, especially energy markets, is scheduled to end this week.
Gold prices have fallen by about eight percent since the United States and Israel launched their strikes on Iran in late February.
For other precious metals, spot silver fell 0.6 percent to $79.40 per ounce, platinum lost 0.7 percent to $2074, while palladium rose 0.3 percent to $1556.16.
