Gold fell from a three-week high ‌hit earlier on Tuesday, as slim hopes of a U.S.-Iran peace deal drove the dollar and oil prices ​higher, clouding U.S. interest rate outlook ahead of key inflation data.

Spot gold fell 0.8% to $4,698.22 per ​ounce by ​0913 GMT, after climbing to its highest since April 21 earlier. U.S. gold futures for June delivery lost 0.5% to $4,706.10.

U.S. President Donald Trump said a ceasefire ⁠with Iran was "on life support" as Tehran rejected a U.S. proposal to end the conflict and stuck to a list of demands the U.S. president described as "garbage".

"The overall driver (for gold's decline) is rising energy prices once again lifting U.S. bond yields ahead ​of today's CPI (consumer ‌price index) print, ⁠as well as ⁠a stronger dollar," said Ole Hansen, head of commodity strategy at Saxo Bank. Oil climbed as ​the key Strait of Hormuz stayed largely closed.

The April inflation ‌data, expected later in the day, could provide clues ⁠on the Federal Reserve's monetary policy direction.

Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is seen as a hedge against inflation, high rates tend to weigh on the non-yielding asset.

Benchmark 10-year U.S. Treasury yields hit a one-week high, while the dollar gained 0.4%, making dollar-denominated commodities more expensive for holders of other currencies. Traders have largely priced out a Fed rate cut this year, with markets now seeing a 36% chance of a hike by March 2027, according ‌to CME Group's FedWatch tool. Markets are also watching Trump's two-day ⁠visit to China on Wednesday, during which he is set ​to meet Chinese President Xi Jinping, with the Middle East expected to be a key part of the agenda.

"Overall, gold remains rangebound, with support established ahead of $4,500, while resistance is at ​the 50-day ‌moving average, near $4,757," said Hansen.

Spot silver fell 2.4% at $84.05 per ounce, ⁠platinum slid 3.1% to $2,066.15, and palladium ​was down 1.6% at $1,484.23.