Bullion was near US$4,590 an ounce, after falling 2.4% over the previous two sessions to the lowest in almost four weeks.

President Donald Trump said Iran has asked the US to lift a naval blockade of Hormuz while the two sides negotiate an end to the two-month war, which has upended global energy supplies.

Mediators in Pakistan expect Tehran will submit a revised proposal in the next few days, CNN reported.

Traders are also keeping tabs on interest-rate decisions in the US, the EU, the UK and Canada in coming days.

On Tuesday, the Bank of Japan left its benchmark rate unchanged at 0.75%, with a split vote suggesting increased odds of a hike in June.

The Federal Reserve is widely expected to hold rates at its meeting that ends of Wednesday, Bloomberg Economics said, with investors also paying attention to whether Jerome Powell will remain at the board after his term as chair ends.

Inflation risks are being fanned by the energy supply shock as it raises the likelihood that central banks will keep rates steady for longer or even hike them, which is a headwind for non-yielding bullion.

Rising bond yields have also increased the opportunity cost of holding gold.

The metal has lost about 13% since the conflict began at the end of February, while crude oil has soared.

Some technical selling emerged after “a break below recent support around US$4,650,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said in a note.

“The market’s immediate focus remains on mediation efforts, with a reopening of the strait and a subsequent drop in oil being the biggest short-term upside catalyst for the metals,” Hansen said.

Spot gold dipped 0.1% to US$4,594.14 an ounce at 11:48am in Singapore.

Silver rose 0.8% to US$73.66 an ounce, while platinum and palladium edged lower.

The Bloomberg Dollar Spot Index, a gauge of the US currency, was steady.