Gold rises 1% at settlement as safe-haven demand increases

February gold futures gained 1% to $4,386.3 per ounce

Gold prices rose at Tuesday’s settlement as a bout of profit-taking came to an end and investors shifted their focus to geopolitical and economic risks.

February gold futures gained 1%, or $42.7, to $4,386.3 per ounce, after falling 4.6% in the previous session.

The move came amid escalating geopolitical tensions in the Middle East, Venezuela, and Eastern Europe, after Russia accused Ukraine of attempting to target President Vladimir Putin’s residence.

Meanwhile, investors were awaiting the release of minutes from the Federal Reserve’s meeting held on Dec. 9–10, at which the central bank cut interest rates by 25 basis points.

The minutes showed policymakers backing further rate cuts if inflation continues to slow over time as expected.