After declining by more than 2%, the yellow metal rises with support from purchases

Gold rose today, supported by purchases, after falling by more than two percent in the previous session following the progress of talks between the United States and Iran, but weak trading due to the Lunar New Year holiday in Asia put pressure on prices.

Gold in instant transactions increased 0.2 percent to $4,886.69 per ounce by 01:10 GMT, after falling by more than two percent yesterday, Tuesday, when it recorded its lowest level in more than a week.

US gold futures for April delivery settled at $4,904.50.

The dollar continued its gains today, as geopolitical risks kept the markets in a state of tension, with investors awaiting the minutes of the Federal Reserve meeting (the US central bank) in search of indications of any possible cuts to interest rates in the future.

The rise of the US currency makes the dollar-denominated precious metal more expensive for holders of other currencies.

Markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea are closed for the Lunar New Year holiday, which means lower trading volumes and the potential for volatility.

The CME Group’s Fed Watch tool shows that markets currently expect three US interest rate cuts this year of 25 basis points.

Gold, which does not yield a yield, usually rises during times of low interest rates.

As for other precious metals, silver in spot transactions fell 0.8 percent to $72.86 per ounce, after falling by more than four percent in the previous session.

Platinum rose 0.9 percent to $2,025.80 per ounce, while palladium increased 0.5 percent to $1,690.54.