By: Economy Middle east

Gold prices marginally increased on Wednesday, sustained by a softer dollar as U.S. President Donald Trump remarked that the conflict with Iran could subside within two to three weeks.

Spot gold climbed 1.10 percent to $4,699.77 per ounce by 10:02 UAE time. U.S. gold contracts for April delivery rose 0.96 percent to $4,723.35.

In the UAE, gold rates experienced a slight upward adjustment. The values of 24K, 22K, 21K, and 14K increased by AED0.25 to AED563.50, AED521.75, AED500.25, and AED334.50 respectively.

Meanwhile, 18K gold remained steady at AED428.75.

The U.S. dollar decreased 0.2 percent, making dollar-denominated commodities more affordable for holders of other currencies.

U.S. President Donald Trump stated Tehran did not have to reach a deal as a prerequisite for the conflict to diminish.

Trump will provide an update on Iran in an address to the nation at 21:00 on Wednesday (01:00 GMT on Thursday).

Global stock and bond markets surged on speculation of a potential de-escalation in the Middle East conflict.

According to Reuters, Gold declined more than 11 percent in March, representing its steepest monthly drop since October 2008 due to increasing expectations of hawkish monetary policy and as the dollar emerged as a safe-haven choice since the Middle East conflict commenced on February 28.

Traders have almost completely discounted any chance of a U.S. Federal Reserve rate cut during this year from about two cuts expected before the war.

Gold tends to flourish in a low-interest-rate environment as it is a non-yielding asset.

Spot silver decreased 0.46 percent to $74.32 per ounce, platinum fell 0.10 percent to $1,950.00 and palladium lost 0.82 percent, trading at $1,454.00.