Gold prices rose to a two-week high on Tuesday as concerns over U.S. President Donald Trump's tariff plans boosted interest in the safe-haven metal, while investors awaited the Federal Reserve policy meeting on Wednesday.
Spot gold gained 0.9% to $3,362.69 an ounce as of 0632 GMT, after hitting its highest since April 22 earlier in the session.
U.S. gold futures climbed 1.5% to $3,370.40.
"Gold prices have a strong run-up to start this 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 IG market strategist Yeap Jun Rong.
On Sunday, Trump announced a 100% tariff on movies produced overseas, but disclosed few details on just how such a levy would work.
On Monday, he said he intends to announce pharmaceutical tariffs within the next two weeks.
The Fed's interest rate decision and Fed Chair Jerome Powell's comments on Wednesday are being closely watched for clues into the central bank's rate trajectory. The Fed has held its policy rate in the 4.25%-4.50% range since last December.
"Any dovish signals could provide further support for gold, reinforcing its broader upward momentum," Rong said.
The Fed will doubtless leave rates unchanged on Wednesday, but the meeting may be the last where the outcome is so cut and dry with Trump's tariffs casting a shadow of uncertainty over the economic outlook, a Reuters report said.
"Fed officials will want to see evidence from labor market and other hard data before cutting. We think this will take a couple of months and therefore expect three 25bp cuts in July, September, and October," Goldman Sachs said.
The non-yielding bullion, a safeguard against political and financial turmoil, thrives in a low interest rate environment.
Spot silver rose 1.5% to $32.98 an ounce, platinum climbed 1.4% to $972.25 and palladium advanced 0.5% to $945.25. - Reuters
