Gold prices slip 0.3 percent to $4,665 ahead of key central bank decisions

Gold prices eased on Tuesday as investors watched the impact of the Middle East conflict and stalled U.S.-Iran peace talks on the interest rate outlook for major central banks meeting this week.

Spot gold fell 0.3 percent to $4,665.86 per ounce as of 9:04 UAE time, while U.S. gold futures for June delivery declined 0.36 percent to $4,676.76.

In the UAE, gold rates were stable across all carats, with 24-carat at AED565.75, 22-carat at AED524.00, 21-carat at AED502.25, 18-carat at AED430.50 and 14-carat at AED335.75.

The dollar edged higher and oil prices hovered above $109 a barrel as the Strait of Hormuz remained largely shut. Moreover, higher crude prices can fuel inflation by raising transportation and production costs, which increases the likelihood of higher interest rates.