Gold prices rose on Tuesday after oil prices lost more than 9% over the previous four sessions, easing some concerns over inflation and the need for further Federal Reserve rate hikes.

A softer dollar and renewed hopes for diplomacy between the U.S. and Iran also supported bullion, although Fed officials remain divided over the path for interest rates.

At 21:04 ET (01:04 GMT), XAU/USD rose 0.4% to $4,359.40 an ounce, while Gold Futures gained 0.3% to $4,396.85. XAG/USD rose 0.6% to $66.43 an ounce, while XPT/USD gained 0.3% to $1,809.03. The US Dollar Index fell 0.03% to 100.39.

Oil slide eases inflation pressure as Iran diplomacy returns

Gold reversed Monday’s decline after the metal suffered its biggest daily drop in a week. The rebound came as oil prices steadied after falling more than 9% over the previous four sessions, reducing some of the inflation pressure that had been building across markets.

The drop in energy prices has also reduced expectations for further Fed tightening. Gold tends to benefit when interest rate expectations fall because bullion does not generate income.

The move also follows renewed diplomatic signals around the U.S. Iran conflict. President Donald Trump is due to address the United Nations General Assembly in New York later Tuesday and has indicated he is open to meeting Iranian President Masoud Pezeshkian on the sidelines.

The renewed diplomatic focus comes after months of conflict and disruption around Middle East energy flows. Any improvement in the outlook for oil supplies could further ease inflation concerns.

Fed officials offer mixed signals on rates

Investors are also tracking comments from Federal Reserve officials after the central bank unanimously raised rates by 25 basis points last week, its first increase in three years.

Chicago Fed President Austan Goolsbee said the central bank cannot simply ignore repeated and persistent supply shocks and must respond even if doing so creates economic hardship.

St. Louis Fed President Alberto Musalem, meanwhile, said additional rate increases may be necessary to bring inflation back to the Fed’s target, which has remained unmet for more than five years.

Monday’s gold decline followed expectations for further Fed tightening this year and hawkish signals from other major central banks, which helped strengthen the dollar.

Even with those near term pressures, investment demand has continued to build. Around 50 tonnes of gold flowed into bullion backed ETFs in September, putting inflows on course for a third consecutive month of gains.