NEW YORK: Gold prices rebounded on Wednesday from a more than one-week low hit in the last session, supported by a softer dollar, even as easing geopolitical tensions, which would typically dampen gold’s safe-haven appeal, failed to curb its momentum.

Spot gold jumped 0.7% to $2,651.27 per ounce, as of 09:13 a.m. ET (1413 GMT). US gold futures rose 1.1% to $2,650.30. The rebound followed a dramatic $100 plunge on Monday, marking gold’s sharpest one-day drop in over five months, as safe-haven demand waned following the announcement of a long-negotiated ceasefire between Israel and Lebanon’s Iran-backed Hezbollah.

Prices fell to their lowest level since Nov. 18 in the previous session. “It appears as if the effect of a softer US dollar has been supporting gold prices in today’s session,” said Hamad Hussain, Assistant Climate and Commodities Economist at Capital Economics.

The dollar index slipped 0.8%, hitting a 1-week low boosting gold’s appeal for holders of other currencies.

“Taking a step back from today’s price movements, greater volatility could be in store for gold prices in the near term ahead of Donald Trump’s inauguration and as the situation in the Middle East develops.”

US president-elect Donald Trump on Monday pledged to slap tariffs on Canada, Mexico and China, the United States’ three largest trading partners, leaving investors cautious.