Gold prices climbed to a two-week high on Tuesday as investors sought refuge in the precious metal following renewed trade policy uncertainty from U.S. President Donald Trump. The market now turns its attention to the U.S. Federal Reserve’s upcoming policy decision.
Spot gold rose 0.7% to $3,357.63 per ounce as of 0410 GMT, after reaching its highest level since April 22 earlier in the session.
“Gold prices have seen a strong start to the week, with investors returning to the safe-haven asset to hedge against portfolio volatility amid renewed tariff concerns from U.S. President Donald Trump,” said Yeap Jun Rong, market strategist at IG.
Trump on Sunday announced a 100% tariff on foreign-produced movies, though details on implementation remain scarce. He also signaled plans to unveil new tariffs on pharmaceutical imports within the next two weeks, further heightening market uncertainty.
Investors are now closely watching the Federal Reserve, which is expected to announce its latest interest rate decision on Wednesday. The central bank has held its benchmark rate steady in the 4.25%–4.50% range since December.
“Any dovish signals could provide further support for gold, reinforcing its broader upward momentum,” Yeap added.
According to a Reuters report, the Fed is widely expected to keep rates unchanged at this meeting. However, it may be the last such straightforward decision, as Trump’s tariff threats inject fresh uncertainty into the economic outlook.
“Fed officials will want to see evidence from labor market and other hard data before cutting,” analysts at Goldman Sachs noted. “We think this will take a couple of months and therefore expect three 25-basis-point cuts in July, September, and October.”
Gold, a non-yielding asset, typically benefits in low-interest-rate environments and during periods of political or economic instability.
Elsewhere in the precious metals market, spot silver rose 1.7% to $33.05 per ounce, platinum gained 1.5% to $973.20, and palladium edged up 1% to $950.66.
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