Gold edged lower on Thursday as higher Treasury yields and a firm dollar weighed on the metal, while hopes of a resolution to the US-Iran conflict limited losses.
Spot gold was down 0.3% at $4,528.03 per ounce, as of 0611 GMT. Bullion had gained more than 1% on Wednesday after falling to its lowest level since March 30 earlier in the day.
US gold futures for June delivery fell 0.1% at $4,528.90.
The dollar rose 0.1%, making greenback-priced bullion expensive for other currency holders.
"Inflation expectation, rising yields, and stronger dollar are the headwinds keeping gold prices under pressure. And these factors will continue to remain in place until we get clarity on how long the conflict is going to persist," said ANZ analyst Soni Kumari.
Gold has fallen more than 14% since the war began in late February, as the non-yielding metal tends to decline on expectations of higher interest rates.
Iran said it was reviewing Washington's latest position on ending the war after US President Donald Trump suggested he was prepared to wait a few days to "get the right answers" from Tehran, Reuters reported.
The yield on the US 10-year Treasury bond was up 1 basis point at 4.578%, resuming its climb after snapping a three-day streak of declines.
Markets are increasingly pricing in possibilities of the Federal Reserve tightening monetary policy this year, with a 39% chance of a 25 basis-point hike expected in December, per CME Group's FedWatch tool.
"The overall trend of 10-year US Treasury yield, since the start of early March, is still in a medium-term uptrend phase. Hence, gold bulls may not be so aggressive in beating up prices at this juncture," said Kelvin Wong, a senior market analyst at OANDA.
Minutes of the Fed's April meeting showed a majority of policymakers felt "some policy firming would likely become appropriate" if inflation stays persistently above the central bank's 2% target.
Gold is expected to remain weak in the upcoming sessions, with resistance seen at $4,645 levels and support at $4,456 levels, said Wong.
Spot silver was down 1.1% at $75.19 per ounce, platinum lost 0.9% to $1,933.13, and palladium fell 0.8% to $1,359.20
