PRECIOUS-Gold rises as investors weigh geopolitical risks; Fed minutes in focus

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Gold rebounds from one-week low

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January FOMC minutes due at 2 p.m. ET

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December PCE data due on Friday

(Updates for US morning session)

By Anmol Choubey

Feb 18 (Reuters) - Gold rose more than 1% on Wednesday as investors ?assessed simmering geopolitical risks, while markets also awaited the ?U.S. Federal Reserve's January meeting minutes due later in the day.

Spot gold was up 1.7% at $4,957.70 per ?ounce by 9:15 a.m. ET (1415 GMT). Bullion prices dropped to $4,841.74 on Tuesday.

U.S. gold ?futures for April delivery gained 0.5% to $4,977.80.

"There is some ?nervousness about the ?existing geopolitical tensions both with Iran and the U.S.," 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 U.S.-mediated Ukraine-Russia peace ?talks in Geneva wrapped up after ?just two hours, ?with President Zelenskiy describing the discussions as "difficult" and accusing Moscow of stalling.

Meanwhile, Iran on Tuesday said it reached a set of "guiding principles" ?with the U.S. 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 $5,594.82 on January 29. The non-yielding metal also tends to benefit in low-interest-rate environments.

Investors await minutes from the U.S. Federal Reserve's January 16-17 meeting, ?due ?at 2 p.m. ET on Wednesday amid easing labor-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 scrutinize Friday's U.S. 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 $76.88 per ounce after declining more than 4% on Tuesday.

Spot ?platinum gained 3% to $2,067.10 per ?ounce and palladium added 2.1% to $1,718.65. (Reporting by Anmol Choubey in ?Bengaluru; Editing by Shreya Biswas)