09:01 AM EDT, 05/26/2026 (MT Newswires) -- Gold edged lower early Tuesday even as the U.S. dollar and yields fell as fresh U.S. strikes on Iran heightened concerns over the progress of peace talks between the two countries.

Gold for July delivery was last seen down $14.00 to US$4,542.40 per ounce.

While peace talks between Iran and the United States are underway, the United States on Monday launched attacks on what it said were missile-launching sites in Iran.

The strikes come as the two countries continue talks to end the three-month war and reopen the Strait, which was the chokepoint for 20% of daily oil demand from Persian Gulf countries. Iran's blockade of the Strait following the Feb. 28 start to the war began the largest-ever oil supply shock and pushed up oil prices by more than half.

The rise in inflation that followed the hike in energy prices has pushed up inflation, raising concerns central banks will need to raise interest rates, bearish for precious metals since they pay no interest.

"Gold and silver continue to take their cues from crude oil because of its influence on inflation expectations, interest-rate outlooks, bond yields, and the dollar. After rallying on Monday alongside the drop in oil prices, both metals trade softer today as renewed US strikes near the Strait reduced optimism surrounding peace negotiations," Saxo Bank noted.

The dollar fell early, with the ICE dollar index last seen down 0.13 points to 99.11. Treasury yields also fell, with the yield on the U.S. two-year note was down 7.0 basis points to 4.062%, while the 10-year note was paying 4.49%, down 7.3 points.