Gold Hits Two-Week High Amid Trade Tensions and Safe-Haven Demand
Gold prices surged to their highest level in two weeks on Tuesday, driven by renewed demand for safe-haven assets amid growing uncertainty surrounding U.S. trade policy and ahead of a key interest rate decision by the Federal Reserve.
Spot gold rose by 1.4% to $3,380.92 per ounce as of 02:24 GMT, marking its highest level since April 22. U.S. gold futures also climbed 2% to $3,389.90, reflecting strong investor sentiment toward the precious metal as a hedge against market volatility and geopolitical risks.
The rally in gold follows recent announcements from the U.S. government regarding the imposition of 100% tariffs on all foreign-produced films, with additional trade measures targeting pharmaceuticals expected in the coming weeks. These developments have heightened uncertainty in global markets, prompting a shift toward more defensive investment strategies.
Investors are also closely monitoring this week’s Federal Reserve meeting, which is expected to conclude on Wednesday. While interest rates are widely anticipated to remain unchanged within the 4.25% to 4.50% range, market participants are looking for forward guidance from the central bank on potential policy shifts, particularly in response to rising trade-related pressures.
In an environment of low interest rates, gold tends to benefit from its non-yielding nature, making it more attractive during periods of economic or political instability. The anticipation of potential monetary easing adds further momentum to gold’s upward trajectory.
Other precious metals also experienced gains. Silver rose 1.5% to $32.99 per ounce, platinum advanced 1.3% to $971.24, and palladium increased 0.5% to $945.75.
Overall, the movement in precious metals markets reflects a growing investor preference for safe assets as global uncertainty persists. With little clarity on the future direction of trade and monetary policy, gold is likely to remain a key instrument for portfolio protection in the near term.