May 20 (Reuters) - Gold prices edged lower on Wednesday as rising U.S. Treasury yields and a stronger dollar overshadowed optimism about a U.S.-Iran peace deal.

Gold fell 0.3 percent to $4,467.59 an ounce in spot trading by 0233 GMT. In the previous session, gold hit its lowest level since March 30.

U.S. gold futures for June delivery fell 0.9 percent to $4,471.10.

Tim Waterer, senior market analyst at KCM Trade, said, "Gold is losing some momentum amid rising yields and a stronger dollar thanks to the shift towards tighter interest rate expectations."

The dollar is hovering near a six-week high, making gold, which is priced in the US currency, more expensive for holders of other currencies.

Benchmark 10-year U.S. Treasury yields settled at their highest level in more than a year, raising the opportunity cost of holding non-yielding gold.

American signals regarding Iran remained mixed, with President Donald Trump warning that Washington might have to bomb Tehran, while his deputy, J.D. Vance, said that both sides were making progress and did not want to return to conflict.

Most economists polled by Reuters predicted that the Federal Reserve (the US central bank) would avoid cutting interest rates this year.

Investors are awaiting the minutes from the Federal Reserve's April monetary policy meeting, due later today, to assess the outlook for the U.S. central bank's monetary policy.

As for other precious metals, silver fell 0.8 percent to $73.22 an ounce in spot trading, platinum declined 0.5 percent to $1,912.67, while palladium rose 0.2 percent to $1,356.32.