Gold prices eased on Tuesday as the dollar firmed, while investors waited to see if the US and Iran are meeting this week for peace talks after renewed tensions over the weekend.
Spot gold was down 0.2% at $4,807.91 per ounce, as of 0217 GMT, extending its fall from Monday when it hit the lowest level since April 13. US gold futures for June delivery were steady at $4,827.30.
The US dollar firmed, making greenback-denominated commodities more expensive for holders of other currencies.
Investors are now awaiting "the next headline regarding whether the talks are going to go ahead in Islamabad and then if they do, whether a ceasefire is extended or even better, a peace deal is done," said Kyle Rodda, a senior financial market analyst at Capital.com.
"If those things happen, gold will probably be well supported because oil prices will drop. If those things don't come about, you might start to see some of that volatility come back into the market," Rodda said.
Oil prices fell as investors reassessed supply risks on expectations peace talks between the US and Iran will take place this week and allow more supply to flow from the key Middle East producing region.
Higher crude prices feed into inflation by raising transportation and production costs. Gold is considered an inflation hedge, but high interest rates make yield-bearing assets more attractive, weighing on its appeal.
Iran is considering attending peace talks with the United States in Pakistan, a senior Iranian official told Reuters on Monday, following moves by Islamabad to end a US blockade of Iran's ports, a significant obstacle to Tehran rejoining peace efforts as the end of a two-week ceasefire approaches.
The two-week ceasefire to the conflict that has killed thousands and roiled the global economy, particularly energy markets, is set to expire this week.
Gold prices have fallen about 8% since the US and Israel launched strikes on Iran in late February.
Among other metals, spot silver fell 0.6% to $79.40 per ounce, platinum lost 0.7% to $2,074, while palladium was up 0.3% at $1,556.16.
