Spot gold was up 1.7% at US$4,957.70 per ounce by 2.15pm. Bullion prices dropped to US$4,841.74 on Tuesday.

US gold futures for April delivery gained 0.5% to US$4,977.80.

“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,” Meir said.

On the geopolitical front, the first day of US-mediated Ukraine–Russia peace talks in Geneva wrapped up after just two hours, with President Zelensky describing the discussions as “difficult” and accusing Moscow of stalling.

Meanwhile, Iran on Tuesday said 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, hit a record high of US$5,594.82 on Jan 29.

The non-yielding metal also tends to benefit in low-interest-rate environments.

Investors await minutes from the US Fed’s Jan 16-17 meeting, due at 2pm today amid easing labour‑market risks and slow progress on inflation.

“The narrative has shifted since the last Fed meeting, when policymakers were more cautious.

“Markets are seeing a different picture now, so I don’t think the minutes will reveal much,” Meir said.

Investors will also scrutinise 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.

In other metals, spot silver rose 4.7% to US$76.88 per ounce after declining more than 4% on Tuesday.

Spot platinum gained 3% to US$2,067.10 per ounce and palladium added 2.1% to US$1,718.65.