Gold fell as elevated oil prices fuelled fears of inflation and prolonged high interest rates, while investors looked for clarity on the stalled US-Iran peace talks, Reuters.

Spot gold was down 0.7 per cent at $4,705.37 per ounce, as of 0432 GMT.

US gold futures for June delivery fell 0.7pc to $4,720.90.

Brent crude oil prices remained above $100 a barrel after larger-than-expected gasoline and distillate stock draws in the United States, and over a lack of progress on the peace talks.

“The sight of Brent oil back at triple digits is keeping inflation worries at the forefront, and is putting gold on the back foot today,” said Tim Waterer, chief market analyst at KCM Trade.

Higher crude oil prices can stoke inflation by raising transportation and production costs, increasing the likelihood of higher interest rates.