Gold climbed as declining oil prices helped temper worries over persistent inflation following reports that Washington is working on a proposal to bring an end to the Middle East conflict.

Trump's statement sent oil lower, while equities jumped. Still, the recovery on Tuesday suggests lingering skepticism over Trump signaling a de-escalation.

Stock markets had originally rebounded on Monday said Trump said he would hold off strikes on Iran.

The US president said talks to end the war are underway with Iran - a claim that officials in Tehran have disputed.

Gold climbed as declining oil prices helped temper worries over persistent inflation following reports that Washington is working on a proposal to bring an end to the Middle East…