Quick overview

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Oil prices fell after President Donald Trump hinted that the Middle East conflict might be coming to an end, prompting gold to rise.

Bullion reversed a drop in the previous session, rising as much as 0.9 percent to surpass $5,180 per ounce. A gauge of the dollar dropped as much as 0.1 percent, continuing Monday’s decline, after Trump declared that the conflict would be resolved “very soon.” In a market that has been battered by incredibly erratic trading, crude fell more than ten percent.

Any indication that the White House is ready to end the war with Iran, which is currently in its second week, could relieve some of the pressure on gold. Oil prices have skyrocketed, and inflation concerns have been raised due to the effective closure of the Strait of Hormuz and Iranian missile strikes on energy infrastructure.

Gold has gained about a fifth this year despite erratic trading and stagnant upward momentum. Safer assets have received widespread support due to Trump’s disruption of international trade and geopolitics, as well as threats to the Fed

. However, the amount of gold held by exchange-traded funds has decreased since the start of the war. According to a note from Daniel Ghali, senior commodity strategist at TD Securities, total holdings dropped by almost 30 tons last week, the largest weekly selloff in over two years.

These holdings have been challenged as markets have priced out rate cuts. He stated that although there are indications that traders have “bought the dip” in the physical over-the-counter market, “volume has been limited and remains typical in scale.” Trump added that the US Navy would accompany tankers across the Strait of Hormuz, the chokepoint off the coast of Iran, through which a fifth of the world’s oil and liquefied natural gas passes through