April 14 (Reuters) - Gold rose on Tuesday, rebounding from a near one-week low hit in the previous session, as hopes of a resolution in the Iran war pressured the dollar and pushed oil prices lower, easing inflation concerns.
Spot gold was up 0.9% at $4,782.19 per ounce as of 1128 GMT, after rising more than 1% earlier in the session. U.S. gold futures for June delivery rose 0.8% to $4,804.70.
Bullion fell to a near one-week low in the previous session as the U.S. military prepared to blockade Iran's ports, angering Tehran and putting a fragile two-week ceasefire at risk.
Negotiating teams from the U.S. and Iran could return to Islamabad later this week, five sources said on Tuesday, days after talks between the two countries ended with no breakthrough.
"The focus remains firmly on developments in the Middle East and the prospects for a resolution. In my view, a de-escalation could ultimately prove supportive for precious metals, particularly if it weighs on the dollar," said Ole Hansen, head of commodity strategy at Saxo Bank.
The U.S. dollar fell to its lowest level in more than a month, making dollar-denominated gold more affordable for holders of other currencies.
Oil prices fell in Asian trade, as concerns about supply risks were allayed by signs of possible talks to end the U.S.-Iran war.
Crude prices have risen about 40% since the Middle East conflict began, stoking inflation fears. While bullion is seen as a hedge against inflation and geopolitical uncertainty, the non-yielding metal's appeal fades in a high interest-rate environment.
Traders currently expect a 31% chance of a 25-basis-point U.S. rate cut this year, up from 27% the previous day. Before the war, traders had anticipated two rate cuts for this year. FEDWATCH
"In the near term, gold remains range-bound with no clear breakout signal. However, the longer the current consolidation persists, the greater the likelihood that the eventual move, at this stage, leans to the upside," Hansen added.
Among other metals, spot silver rose 2.8% to $77.65 per ounce, platinum gained 0.3% to $2,076.50, while palladium inched 0.1% lower at $1,572.62.
Reporting by Pablo Sinha in Bengaluru; Editing by Sharon Singleton and Diti Pujara
