Gold prices climbed for a second straight session to hit a one-week peak on Tuesday as the U.S. dollar pulled back from recent highs, while investors awaited comments from Federal Reserve officials for clarity on its interest rate cut policy.

Spot gold rose 0.8% to $2,634.20 per ounce, the highest since Nov. 11. Prices gained 2% on Monday, recovering from a two-month low hit reached last Thursday. U.S. gold futures added 1% to $2,641.10.

"The selling has run out of steam and that's attracting those potential buyers sitting on the fence waiting for the market to stabilize to get back in," said Ole Hansen, head of commodity strategy at Saxo Bank.

"The dollar has stopped rising and that probably was the necessary trigger," Hansen added.

The U.S. dollar saw a pullback as investors engaged in profit-taking following last week's rally that carried it to a one-year high. The decline in the dollar's value makes gold less expensive for buyers holding other currencies.

Multiple Fed officials are scheduled to speak this week, which could offer further insights into path of U.S. interest rates.

Traders currently see a 58% chance that Fed policmakers will further lower interest rates by another quarter point in December.

Also boosting gold was an escalation of attacks in the Russia-Ukraine war. Russia launched its largest air strike on Ukraine in nearly three months on Sunday.

Gold, which doesn't pay any interest, performs well in times of geopolitical uncertainty and low-interest rate environments.

Among other metals, spot silver added 0.7% to $31.38, hitting a one-week high earlier in the session. Platinum ticked 0.2% lower to $965.52.

Source: CNBC