Gold prices fell as oil prices rose due to tensions between the US and Iran.

- Gold prices fell on Tuesday after fresh U.S. attacks in Iran pushed oil prices higher, raising concerns about inflation and interest rates remaining high for longer.

Spot gold fell 0.7 percent to $4,537.54 an ounce by 0218 GMT, while U.S. gold futures for June delivery rose 0.3 percent to $4,538.50.

An informed official said on Monday that Iran's chief negotiator and foreign minister visited Doha for talks with Qatar's prime minister about a possible deal with the United States to end the three-month-old war, after Washington and Tehran downplayed hopes for an imminent breakthrough.

Despite the ongoing talks, US forces on Monday carried out attacks in southern Iran targeting boats that were attempting to plant mines and missile launch sites, in what were described as defensive operations.

Kelvin Wong, senior market analyst at OANDA, said, "Even though we have a peace agreement between the United States and Iran in its final stages, the damage to oil production facilities in the Middle East could effectively prevent oil flows from the Middle East to the rest of the world from returning to normal levels quickly."

He added, "The market has begun to absorb this situation, as there are very high probabilities of interest rate hikes this year."

Brent crude futures rose 2 percent in early Asian trading on Tuesday, as tensions between the United States and Iran continued.

As for other precious metals, silver fell 1.8 percent to $76.66 an ounce in spot trading, platinum lost 0.9 percent to $1,950.70 and palladium declined 1.1 percent to $1,382.42.