Gold prices edged higher as the dollar weakened, making the metal more attractive to investors on Wednesday (April 1) in global trading.

Spot gold rose 0.4 percent to $4,685.79 per ounce by 0228 GMT. Earlier in the day, it reached $4,723.21, its highest level since March 20.

US gold futures for April delivery also increased, gaining 0.8 percent to $4,713.40.

The rise in gold prices came as the US dollar fell by 0.2 percent. A weaker dollar makes gold and other commodities priced in the greenback cheaper for investors using other currencies, increasing demand.

“Talks that the US might wrap up the war in ​two to three weeks even if the Strait (of Hormuz) is not reopened reinvigorated the US equity markets and pulled gold higher along with it,” said Marex analyst Edward Meir.

US President Donald Trump said Tehran did not have ​to make a deal as a prerequisite for the conflict to wind down.

Trump will provide ​an update on Iran in an address to the nation at 9 pm on Wednesday (0100 GMT on Thursday).

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

“However, the upside (to gold prices) is being limited due to the fact that interest rates can move higher if inflationary expectations reignite,” Meir said.

Gold fell more than 11% in March in its steepest ​monthly fall since October ​2008 due to ⁠rising expectations of hawkish monetary policy and as the dollar emerged as a safe-haven winner since the Iran war started on February 28.

Traders ​have almost completely priced out any chance of a US Federal Reserve ​rate cut ⁠this year from about two cuts expected before the war.

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

“Should geopolitical tensions de-escalate further, then expectations for Fed easing ⁠could return. ​In such a scenario, real yields can ease, providing ​support for gold,” said Christopher Wong, a strategist at OCBC.

Spot silver fell 0.8% to $74.53 per ounce, platinum gained 0.7% ​to $1,963.22 and palladium was up 0.6% at $1,484.84.