Gold prices rose on hopes of de-escalation in the Middle East conflict, but were poised for their worst month in more than 17 years as higher energy prices dimmed hopes for a US interest rate cut this year, reports Reuters.

Spot gold was up 1.5 per cent at $4,578.89 per ounce, as of 0235 GMT.

US gold futures for April delivery gained 1.2pc to $4,611.30.

The dollar eased, making greenback-denominated commodities more affordable for holders of other currencies.

“Gold prices are bouncing in early Asia-Pacific trade after US President Donald Trump told aides he is willing to end the U. military campaign against Iran… That triggered a risk-on response from financial markets,” said Ilya Spivak, head of global macro at Tastylive.