Gold prices ‌fell on Tuesday, hovering near a one-and-a-half-month low hit in the previous session, pressured by inflation fears ​and expectations of higher U.S. interest rates.

Spot gold was down 0.6% at $4,539.54 per ounce by 1040 GMT. Prices ​fell to ​their lowest level since March 30 at $4,479.54 on Monday.

U.S. gold futures for June delivery lost 0.3% to $4,543.

"Hawkish Federal Reserve expectations, driven by inflationary fears stemming ⁠from a protracted standoff in the Persian Gulf, are weighing on the precious metal," ActivTrades analyst Ricardo Evangelista said.

"Investors will continue to keep a close eye on developments surrounding the standoff between the U.S. and Iran, with any new developments likely to influence expectations regarding ​the Fed's monetary policy ‌path and, in ⁠turn, impact gold ⁠prices."

Benchmark 10-year U.S. Treasury yields steadied around a more than one-year high, as rising energy prices ​from the Middle East war stoked inflation fears and boosted wagers ‌on rate hikes.

Higher Treasury yields raise the opportunity cost ⁠of holding non-yielding assets including gold.

Brent crude oil prices fell on Tuesday but held above $110 a barrel, as the conflict has effectively closed the key Strait of Hormuz.

Traders are increasingly pricing the possibility of the Fed tightening monetary policy this year, with a 38% chance of a rate hike expected in December, according to CME Group's FedWatch tool.

While gold is seen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset.

Investors also await the minutes of the Fed's latest policy meeting, which are ‌scheduled to be released on Wednesday, as they seek fresh clues ⁠on the monetary policy path.

On the geopolitical front, U.S. ​President Donald Trump said on Monday he had paused a planned attack against Iran after Tehran sent a peace proposal to Washington, and that there was now a "very good chance" of reaching ​a deal ‌limiting Iran's nuclear program.

Spot silver fell 2.3% to $75.86 per ounce, platinum lost ⁠0.8% to $1,964.74, and palladium dropped 1.9% to $1,391.86.