Gold prices have rebounded after hitting a four-month low as comments by US President Donald Trump eased market concerns.

Gold prices trimmed earlier losses and rebounded after sharp declines, following comments by US President Donald Trump on postponing planned strikes.

Spot gold fell 0.4 percent to $4,470.36 per ounce by 10:53 a.m. ET (1453 GMT), after dropping more than 8 percent earlier in the session to a low of $4,097.99.

The metal had already recorded its worst weekly performance since 1983 last week.

Meanwhile, US gold futures also declined, falling 2.2 percent to $4,471.60.

“The overnight sell-off was a continuation of ⁠the long liquidation we’ve seen over the past several sessions, driven largely by ​expectations of rising interest rates. The dramatic reversal came after Trump’s post on Truth ​Social. The headline triggered broad reversals across markets – metals, energy and equities alike,” said David Meger, director of metals trading at High Ridge Futures.

“It’s fair to assume that we’re going to see volatility ​continue,” he added.

Higher energy prices due to the Iran war have lately increased ​bets on rates staying higher for longer. Gold, despite its reputation as an inflation hedge and ‌safe haven, ⁠has struggled to benefit as elevated rates raise the opportunity cost of holding the non-yielding metal.

Trump said the US and Iran have held constructive talks and that he would postpone any strikes on power plants and energy infrastructure. Conversations with Iran will continue ​throughout the week, ​he said in a ⁠social media post. However, Iran’s Fars news agency, citing a source, said there are no direct or indirect communications with the ​US.

Following Trump’s comments, oil prices plunged and the dollar moved ​lower. A ⁠weaker dollar makes greenback‑priced bullion more affordable to other currency holders.

Spot gold prices have fallen over 15% since the Middle East conflict began on February 28 and have retreated ⁠about 20% ​from its record peak of $5,594.82 reached on January ​29.

Among other metals, spot silver rose 3.3% to $70.01 per ounce, while platinum slipped 1.1% to $1,901.53. Palladium added 3.4% ​to $1,450.79.