Gold prices eased on Tuesday as investors waited to see whether the US and Iran would consider attending peace talks after renewed tensions over the weekend, while a marginally firmer dollar added to the pressure, reports Reuters.

Spot gold was down 0.5 per cent at $4,795.51 per ounce, as of 0418 GMT, extending its fall from Monday when it hit its lowest level since April 13.

US gold futures for June delivery fell 0.3pc to $4,814.

The US dollar edged up, making greenback-denominated commodities more expensive for holders of other currencies.

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,” Rodda said.