Gold Edges Higher as US-Iran Diplomacy and Weak Oil Weigh on USD

Gold prices rose on Tuesday as diplomatic developments between the US and Iran led to a softer dollar, while falling oil prices also weighed on the greenback ahead of the Federal Reserve's two-day policy meeting.

The move reflects a cautious repositioning by investors as they await the outcome of the Federal Open Market Committee (FOMC) meeting, which could provide critical signals on the trajectory of interest rates.

A weaker dollar makes gold more attractive to holders of other currencies, and the current environment is creating a mixed backdrop for the metal.