Gold prices climbed 2% on Wednesday, rebounding from a ‌more than one-week low hit in the previous session, as the dollar took a breather and ​escalating tensions in the Middle East boosted safe-haven demand for the yellow metal.

Spot gold gained 1.8% to $5,175.39 ​per ounce ​by 0925 GMT. U.S. gold futures for April delivery added 1.2% to $5,186.90.

The U.S. dollar fell 0.1%, making greenback-priced gold more affordable for buyers using other ⁠currencies.

"After the past few days of position unwinds and dollar strength, markets are back to a more typical macro risk-off stance, with silver higher too. A pause in the rise of the dollar and Treasury yields helps with their opportunity costs," said Jamie ​Dutta, market ‌analyst at Nemo.money.

"Gold ⁠and silver's safe-haven ⁠characteristics can shine again," Dutta added.

Gold fell more than 4% on Tuesday, as investors piled into the ​dollar and inflation concerns dimmed bets on interest rate cuts, ‌which could lower the opportunity cost of holding ⁠the metal.

Spot silver, meanwhile, advanced 4.5% to $85.74 per ounce on Wednesday, after falling more than 8% in the last session.

U.S. forces continued a round-the-clock assault on Iran, and Israel mounted a "broad wave" of strikes on Wednesday, targeting Iranian missile sites and air defence systems.

Asian stocks tanked, as investors dumped crowded bets on chipmakers on worries that the widening Middle East war will drive an oil shock that raises inflation and delays interest rate cuts.

Investors widely expect the U.S. Federal Reserve to hold rates at ‌the end of its next two-day meeting on March ⁠18, according to the CME Group's FedWatch tool.

"If the military ​campaign prolongs or expands across the region, safe-haven demand could continue to support gold above the $5,000/oz level and potentially open the door for a retest of the recent highs," said ​Linh Tran, senior ‌market analyst at XS.com.

In other metals, spot platinum added 3.7% ⁠to $2,159.45 per ounce, while palladium gained ​3% to $1,697.08.

(Reporting by Pablo Sinha in Bengaluru; Editing by Eileen Soreng)