India, July 14 -- Gold traded higher on Tuesday after falling around 3 percent to hit a two-week low in the previous session amid escalating Middle East tensions and hawkish Fed bets.

Spot gold rose 0.4 percent to $4,018.05 an ounce while U.S. gold futures were up half a percent at $4,025.10.

The U.S. dollar edged lower after rising in the previous session amid an escalation in tensions between the United States and Iran.

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