PRECIOUS-Gold surges over 2% on geopolitical jitters despite Fed rate‑path split

By Anmol Choubey

Feb 18 (Reuters) - Gold rose more than 2% on Wednesday, as investors assessed simmering geopolitical risks, even as minutes from the U.S. Federal Reserve's January meeting showed officials divided over whether interest rates may need to be hiked again or should remain on hold.

Spot gold XAU= was up 2.4% at $4,992.11 per ounce by 02:18 p.m. ET (1918 GMT). Bullion prices had fallen more than 2% to $4,841.74 on Tuesday, hitting their lowest in a week.

U.S. gold futures GCcv1 for April delivery settled 2.1% higher at $5,009.50.

"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, two days of peace talks in Geneva between Ukraine and Russia ended on Wednesday without a breakthrough. The White House also said discussions with Iran in Geneva made only limited progress, with gaps remaining and Tehran expected to return with more details in the coming weeks.

Minutes from the Fed's January meeting showed officials were nearly unanimous in keeping rates steady last month, but remained divided on the outlook, with several warning that rates could rise again if inflation stays high, while others debated whether and when further cuts might be needed.

Gold is "likely to retake $5,000 despite Fed minutes that were slightly hawkish; the vast majority of the market doesn't see an interest move until June," said Tai Wong, an independent metals trader. FEDWATCH

Meanwhile, consumer price inflation for January was weaker than expected, yet job growth for the month beat expectations and the unemployment rate fell.

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.

Non-yielding gold, a traditional safe-haven asset, tends to benefit in low-interest-rate environments.

Meanwhile, spot silver XAG= rose 5.2% to $77.24 per ounce after declining more than 4% on Tuesday.

Spot platinum XPT= gained 3.5% at $2,078.28 per ounce, while palladium XPD= rose 1.2% to $1,702.75.