Gold prices rose on Tuesday, supported by a weaker dollar ‌and easing energy costs after U.S. President Donald Trump suggested the war in the Middle East could end soon.

A respite from a potential war-driven surge in inflation would likely reduce the likelihood of central banks raising interest rates, a positive for non-yielding gold.

Spot gold rose 0.8% to $5,179.52 per ​ounce, as of 0233 GMT. U.S. gold futures for April delivery rose ⁠1.7% to $5,188.70.

The dollar fell 0.4%, making greenback-priced bullion cheaper for holders of other currencies.

Gold ​prices rose "due to the news flow from U.S. President Trump himself, stating that there is ​a potential for de-escalation... So what we could see is that potential inflation expectation starts to tone down given this dramatic fall in oil price," said Kelvin Wong, a senior market analyst at OANDA.

Oil ​prices fell over 10% after Trump said the war in the Middle East could end ​soon, easing concerns about prolonged disruptions to global oil supplies.

Trump also warned that U.S. attacks could rise ‌sharply ⁠if Iran sought to block tanker traffic through the Strait of Hormuz, which handles one-fifth of the world's oil supply.

The war has effectively shut the Strait, stranding tankers for over a week and forcing producers to halt output as storage fills up, sending energy prices soaring.

Gold prices fell on Monday as higher energy costs fanned inflation concerns and further dimmed the prospects for a near-term cut in interest rates by the U.S. Federal Reserve.

Investors expect the Fed to keep rates steady at the end of its two-day meeting on March 18, per CME Group's FedWatch tool. [FEDWATCH]

Gold is seen as an inflation hedge, but low rates reduce the opportunity cost of holding it as a zero-yield asset.

Markets are now awaiting the U.S. consumer price index for February, ⁠due on ​Wednesday, and the Personal Consumption Expenditures (PCE) index - the Fed's ​preferred inflation gauge - on Friday.

Spot silver rose 3% to $89.60 per ounce. Spot platinum was up 1.2% at $2,208.16, and palladium ​gained 0.2% to $1,693.84.