Gold prices rose in Asian trading on Thursday after jumping more than 2% in the previous session, as investors assessed persistent geopolitical risks and mixed signals from the Federal Reserve.

Spot gold advanced 0.9% to $5,019.95 an ounce by 02:03 ET (07:03 GMT). U.S. Gold Futures gained 0.6% to $5,037.75.

The yellow metal jumped 2.1% on Wednesday, and recovered most of the ground it lost earlier this week.

Trading volumes were subdued with several major Asian markets closed for holidays, exaggerating short-term price swings.

US-Iran tensions drive haven demand; Fed outlook in focus

Geopolitical tensions remained a key pillar of bullion demand. Investors monitored heightened tensions between the United States and Iran, with concerns over maritime security in the Strait of Hormuz, and stalled nuclear diplomacy.

At the same time, little progress in Russia-Ukraine peace efforts reinforced broader security risks, sustaining safe-haven flows into gold.

Sentiment turned cautious on Thursday after minutes from the Federal Reserve’s latest meeting highlighted divisions among policymakers over the interest-rate outlook.

While some officials flagged the possibility of further tightening if inflation proves sticky, others acknowledged conditions for eventual easing later in the year.

The prospect that U.S. rates could remain elevated for longer supported the dollar and Treasury yields, weighing on non-yielding gold after its recent surge.

The US Dollar Index traded largely flat after jumping 0.6% overnight on slightly hawkish Fed minutes.

Bullion tends to struggle when borrowing costs rise because higher yields increase the opportunity cost of holding the metal.

Investors now await U.S. personal consumption expenditures (PCE) price index data due on Friday, the Fed’s preferred inflation gauge, for clearer signals on the policy path.

Metal markets upbeat; silver extends gains

Other precious and industrial metals also extended gains on Thursday.

Silver prices jumped 2.3% to $78.98 per ounce, while platinum rose 0.8% to $2,099.11/oz.

Benchmark Copper Futures on the London Metal Exchange slipped 0.5% to $12,920.20 a ton, while U.S. Copper Futures gained 0.5% to $5.80 a pound.