Tuesday saw gold rise 2 percent, to $1,224.20 an ounce. The gain came after Dennis Lockhart, head of the Atlanta Federal Reserve, made comments suggesting interest rates will not rise in the near future. His statement caused the dollar to drop, increasing the appeal of precious metals. Gold is now at its highest level since late October.

“The move since yesterday seems to be reflecting some nervousness in equity markets and the dollar,” ABN AMRO Bank NV analyst Georgette Boele told Reuters. “It looks like support is around $1,150 and $1,180 at this point, but eventually prices are going to break much lower, we are targeting $900 by the end of next year, based on the dollar and also on the relatively positive interest rate outlook.”

Meanwhile, US gold futures rose 2.5 percent to trade at $1,224.80 per ounce.