NEW YORK: Gold prices extended gains for a second session on Tuesday as the US dollar retreated and ongoing tensions over Ukraine underpinned the metal’s safe-haven demand.

Spot gold gained 0.3% to $1,801.69 per ounce by 12:48 p.m. EST (1748 GMT). US gold futures rose 0.4% to $1,803.40.

The Fed sounded much more dovish on Monday than they did last week and as a result, we’ve seen the dollar retreat and asset prices rally which was “almost specifically due to yesterday’s Fed speak”, said David Meger, director of metals trading at High Ridge Futures.

Fed policymakers said they’ll raise interest rates in March but spoke cautiously on Monday about what might follow in the face of an uncertain outlook for inflation and an ongoing pandemic.

The dollar index eased off multi-month peaks against its rivals, supporting demand for the greenback-priced bullion among buyers holding other currencies.

Russia-Ukraine tensions continue to keep a bid on gold’s safe haven demand, Meger noted.