PRECIOUS-Gold rises as investors weigh geopolitical risks, await Fed minutes

*

Gold rebounds from one-week low

*

January FOMC minutes due at 2 p.m. ET

*

December PCE data due on Friday

*

Silver rises more than 6%

(Updates for US mid-session trading)

By Anmol Choubey

Feb 18 (Reuters) - Gold rose more than 2% on Wednesday, as ?investors assessed simmering geopolitical risks and awaited the U.S. ?Federal Reserve's January meeting minutes due later in the day.

Spot gold was up 2.6% at $5,003.85 per ounce ?by 11:36 a.m. ET (1636 GMT). Bullion prices fell more than 2% to $4,841.74 on Tuesday, ?hitting their lowest in a week.

U.S. 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 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 wrapped up ?in just ?two hours, with President Zelenskiy describing the discussions as "difficult" and accusing Moscow of stalling.

Meanwhile, Iran said on Tuesday 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, has climbed more than 15% so far this year, extending last year's strong gains.

Separately, investors are also awaiting 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 keep an eye on 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.

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. (Reporting by Anmol Choubey in Bengaluru; Editing ?by Shreya Biswas and Diti Pujara)