(REUTERS)
Gold rose more than 2% on Wednesday, as investors assessed simmering geopolitical risks and awaited the US Federal Reserve's January meeting minutes due later in the day.
Spot gold was up 2.6% at $5,003.85 per ounce by 1636 GMT. Bullion prices fell more than 2% to $4,841.74 on Tuesday, hitting their lowest in a week. US gold futures for April delivery gained 2.4% to $5,024.
"There is some nervousness about the existing geopolitical tensions both with Iran and the US," said Marex analyst Edward Meir. However, "we've been in a very tight trading range for much of February. You can't really say there's a clear direction at this point."
On the geopolitical front, the first day of US-mediated Ukraine-Russia peace talks wrapped up in just two hours.
Meanwhile, Iran said on Tuesday it reached a set of "guiding principles" with the US for nuclear talks, though its foreign minister cautioned that a final deal is not imminent.
Gold, a traditional safe-haven asset, has climbed more than 15% so far this year, extending last year’s strong gains.
Separately, investors are also awaiting minutes from the US Federal Reserve's January 16-17 meeting, due on Wednesday amid easing labour market risks and slow progress on inflation.
Investors will also keep an eye on Friday's US personal consumption expenditure report, the Fed's preferred inflation gauge, for clues on inflation and its potential impact on borrowing costs.
Markets currently expect a total of two rate cuts this year, with the first expected in June, per CME's FedWatch Tool.
Non-yielding gold tends to benefit in low interest rate environments.
In other metals, spot silver rose 6.4% to $78.10 per ounce after declining more than 4% on Tuesday.
Spot platinum gained 4.4% to $2,095.57 per ounce and palladium added 3.5% to $1,740.89.
Gold rises as investors weigh geopolitical risks, await Fed minutes
0
February 18, 2026
