Gold prices have been trading flat since Monday's trading at around $4,800 amid geopolitical instability in the Middle East conflict.
At 9 a.m., gold prices were at $4,818, down 0.05% since they opened early Tuesday in Asian trading.
A Reuters report said Iran is considering attending peace talks with the United States (US) in Pakistan. The development comes after Pakistan sought to end US sanctions on Iranian ports.
However, a final decision has not yet been reached. Iranian Foreign Minister Abbas Araghchi stressed that US violations of the ceasefire continue to be the main obstacle to diplomatic efforts.
Uncertainties in US-Iran talks and the risk of renewed blockades in the Strait of Hormuz have pushed oil prices higher. Disruptions to the world's main energy route have raised concerns about global supplies.
Rising energy prices are putting pressure on global inflation, making it harder for central banks to lower interest rates. In a high interest rate environment, assets like gold become less attractive because they do not offer interest returns, although they remain a hedge against geopolitical tensions.
Market attention now turns to US Retail Sales data due on Tuesday. The data is expected to have risen by 1.4% month-on-month in March, compared to 0.6% in February, reflecting continued strength in consumer spending.
If the data shows lower-than-expected inflationary pressures in the US, it could potentially weaken the US Dollar and indirectly support USD-denominated commodity prices.
