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Investing.com-- Gold prices extended sharp gains in Asian trading on Tuesday as bullion’s haven demand rebounded on fresh U.S. tariff announcements, while investors exercised caution ahead of the Federal Reserve’s policy meeting starting later in the day.
As of 02:16 ET (06:16 GMT), Spot Gold rose 1% to $3,366.95 per ounce, while Gold Futures expiring in June jumped 1.5% to $3,373.75 an ounce.
The yellow metal jumped nearly 3% on Monday, erasing most of the losses it recorded last week.
Gold prices had hit a record high last month, just above $3,500 per ounce.
Gold rebounds on new Trump tariffs; Fed decision on tap
President Donald Trump signed an executive order on Monday to enhance domestic pharmaceutical manufacturing and warned that import tariffs on the sector could be introduced within two weeks.
A day earlier, he had instructed his administration to impose a 100% tariff on all foreign-produced movies in the U.S.
These moves come amid ongoing uncertainty around U.S.-China trade tensions.
U.S. Treasury Secretary Scott Bessent told CNBC on Monday that he expects to see progress in U.S.-China trade talks in the coming weeks. China said last week that it was evaluating the possibility of trade talks with the U.S.
Hopes of dialogue over trade tensions eased some market fears initially, but the introduction of new tariffs and ongoing uncertainty drove investors toward safe-haven assets.
Investors were also treading carefully ahead of the Fed’s policy meeting starting later in the day.
The Fed is expected to keep interest rates unchanged as the policymakers have adopted a cautious stance to assess the impact of Trump tariffs on inflation.
The US Dollar Index was largely unchanged in Asian trading on Tuesday.
Among other precious metals, Silver Futures jumped 2.4% to $33.275 an ounce, while Platinum Futures rose 1% to $974.10 an ounce.
Copper prices rise, China trade data on tap
Copper prices rose on Tuesday as a weaker greenback lent support.
Traders awaited upcoming Chinese trade data for further insight into global demand trends and their potential impact on commodity markets.
Benchmark Copper Futures on the London Metal Exchange rose 0.7% to $9,462.65 a ton, while Copper Futures expiring in July were muted at $4.7093 a pound.