Dubai gold prices rise as US-Iran tensions weigh on Fed outlook

Dubai gold buyers faced higher rates on Tuesday morning after local prices reversed Monday's decline, with the 24-karat variety gaining Dh3.75 per gram. The 24K rate stood at Dh489.25 per gram at 9.11 am on August 4, compared with Dh485.50 on Monday. The 22K variety rose by Dh3.50 to Dh453 per gram from Dh449.50. Buyers purchasing 21K gold were quoted Dh434.25 per gram, up from Dh431, while the 18K variety increased to Dh372.25 from Dh369.50. Gold traded in a narrow range globally as investors monitored diplomatic efforts aimed at cooling tensions between the US and Iran, which could push energy prices lower and reduce pressure on the US Federal Reserve to raise interest rates. Bullion traded near $4,060 an ounce after ending Monday little changed. Higher bond yields and expectations that interest rates will remain elevated typically weigh on gold, which does not provide investors with a regular yield.