Gold falls as investors await clarity on US-Iran talks, dollar edges up

Gold prices fell on Tuesday, as wary investors watched developments around the possible U.S.-Iran peace talks, while a firmer dollar added to the pressure. Spot gold was down 0.7% at $4,785.99 per ounce, as of 0745 GMT, extending its fall from Monday when it hit its lowest level since April 13. U.S. gold futures for June delivery fell 0.5% to $4,805. The U.S. dollar was up on Tuesday, making greenback-denominated commodities more expensive for holders of other currencies. The U.S. expressed confidence that peace talks with Iran would go ahead in Pakistan, and a senior Iranian official said Tehran was considering joining. Investors are awaiting "the next headline regarding whether the talks are going to go ahead in Islamabad and then if they do, whether the ceasefire is extended or even better, a peace deal is reached," said Kyle Rodda, 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." Oil prices fell on expectations that the peace talks would take place this week and allow more supply to flow from the key Middle East producing region. Higher crude prices can stoke inflation by raising transportation and production costs. While gold is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing on its appeal. In the U.S., Kevin Warsh, President Donald Trump's nominee to lead the Federal Reserve, will attend his Senate confirmation hearing at 10 a.m. EDT (1400 GMT) on Tuesday. Warsh is set to tell lawmakers that he is "committed to ensuring that the conduct of monetary policy remains strictly independent." Among other metals, spot silver fell 1.1% to $79.06 per ounce, platinum lost 0.6% to $2,076.35, while palladium was up 0.6% at $1,560.19.