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Gold fell on Tuesday as fresh U.S. attacks in Iran ‌pushed oil prices higher, fuelling concerns around inflation and higher-for-longer interest rates.

Spot gold was down 0.6% at $4,542.20 per ounce as of 0401 GMT. U.S. gold futures for June delivery gained 0.4% ​to $4,542.80.

Iran's top negotiator and its foreign minister were in Doha for talks with ​Qatar's prime minister on a potential deal with the U.S. to ⁠end the three-month-old war, an official briefed on the visit said on Monday, ​after Washington and Tehran played down hopes for an imminent breakthrough.

Even as the talks ​proceeded, U.S. forces on Monday conducted strikes in southern Iran against targets including boats attempting to lay mines and missile launch sites, in what it described as defensive actions.

"Even though we have ​a peace deal that is being done and dusted between the U.S. and ​Iran, the damage that has been done to Middle East oil production facilities could actually prevent ‌a ⁠rapid normalization of oil flows flowing into the rest of the world from the Middle East," said Kelvin Wong, a senior market analyst at OANDA.

“The market has started to price in this situation, showing very high odds of an interest rate hike ​to come in ​this year.”

Brent crude ⁠futures rose 2% in early Asian trade on Tuesday, as tensions between the U.S. and Iran persisted.

Elevated crude oil prices can ​fuel inflation and keep interest rates higher for longer. While ​gold is ⁠seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.

Markets are pricing in a U.S. Federal Reserve rate hike before year-end, with a ⁠56% chance ​of a move by December, according to CME ​Group's FedWatch tool. FEDWATCH

Spot silver fell 1.6% to $76.84 per ounce, platinum lost 0.8% to $1,952.56, and palladium slid 1.2% ​to $1,381.27.