Gold fell toward $4,300 per ounce on Tuesday, staying under pressure amid heightened Middle East tensions as Iran denied holding talks with the US to end the conflict.

Tehran dismissed President Donald Trump’s announcement as an attempt to influence financial markets and launched new attacks on US targets, while Israel continued strikes against Iran.

On Monday, gold had staged a sharp intraday rebound after Trump postponed planned US strikes on Iranian energy infrastructure and claimed negotiations were underway.

The outcome of any talks and the potential reopening of the Strait of Hormuz remain highly uncertain, keeping inflation risks elevated.

Gold had dropped as much as 25% from its March peak as rising energy prices fueled inflation concerns and bolstered expectations of interest rate hikes.