Gold Prices Fluctuate as US-Iran Talks Ease Tensions

Gold prices fluctuated on Tuesday as traders weighed the Federal Reserve's interest-rate path after tensions in the Middle East eased, leading to a decrease in energy-driven inflation. The precious metal traded around $4,050 an ounce, having seen out July with a 1% gain, its first monthly increase since February.

The US-Iran talks, which began on Monday afternoon, also contributed to the market's volatility. President Donald Trump said new Iran talks would start after he called off a planned attack on Iran partially in response to pleas from US allies in the Middle East, including Saudi Arabia.

US crude slid to settle near $80 a barrel, while Treasury yields fell. According to Samantha Dart, co-head of global commodities research at Goldman Sachs, 'The environment is a little bit better in terms of support for gold right now after the Fed meeting.' She added that fears of higher interest rates increase the opportunity cost of holding gold and prompt investors to reduce holdings.