Gold rose more than 2 per cent, buoyed by a softer dollar, while a drop in oil prices eased concerns about elevated inflation and higher global interest rates, amid reports of a US plan to end the Middle East war.

Spot gold rose 2.2pc to $4,570.74 per ounce by 0450 GMT. US gold futures for April delivery gained 3.8pc to $4,569.10.

The dollar eased, making greenback-priced bullion cheaper for holders of other currencies.

With hopes of de-escalation in the Middle East conflict, and “as USD strength eased, safe-haven demand starts to reassert. This reinforces the view that gold didn’t lose its safe-haven appeal. It was briefly crowded out by the USD, and now that pressure is easing,” said Christopher Wong, a strategist at OCBC.