Gold fell for a second consecutive session on Wednesday, hitting a ​near two-week low, pressured by a stronger U.S. dollar and expectations of higher interest rates, while investors ​also monitored ​progress in U.S.-Iran peace talks.

Spot gold slipped 0.9% to $4,071.28 an ounce as of 0909 GMT, after touching its lowest level since June 11. U.S. gold futures for ⁠August delivery declined 1.5% to $4,088.80/oz.

"The strong U.S. dollar continues to be a headwind for gold, with lackluster investment demand as gauged by ETF holdings, not helping," said UBS analyst Giovanni Staunovo.

The U.S. dollar extended its rally to a 13-month high, making bullion more expensive ​for overseas ‌buyers.

Markets are now ⁠pricing in three ⁠Federal Reserve rate hikes this year, a sharp shift from expectations of just one increase before last ​week's policy meeting, according to the CME FedWatch Tool.

Higher interest rates ‌reduce the appeal of non-yielding gold. Bullion has fallen ⁠over 4% since the Fed meeting last week.

Current price levels are likely to support central bank buying, which remained steady in May, but persistent inflation concerns at the Fed are expected to cap investment demand and keep near-term risks skewed to the downside, added Staunovo.

Investors are also awaiting U.S. Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation measure, due on Thursday for further signals on the monetary policy outlook.

Analysts at Standard Chartered said in a note that correlations between precious metals and traditional macro drivers – particularly real ‌yields and the U.S. dollar – are strengthening again, but structural factors ⁠remain the main medium-term driver of gold amid continued regional ​stock dislocations.

On the geopolitical front, U.S. President Donald Trump said on Tuesday that Iran had agreed to indefinite nuclear inspections, while Tehran denied making any such concession, casting doubt over the durability ​of the fragile ‌peace deal.

Among other metals, spot silver fell 1.5% to $61.12 per ounce, ⁠platinum lost 1.4% to $1,629.00, and ​palladium dropped 1.6% to $1,217.25.