Gold prices rose to a maximum of two weeks on Tuesday, since concerns about the tariff plans of the president of the United States, Donald Trump, increased interest in the safe metal, while investors waited for the Federal Reserve meeting on Wednesday.
Spot Gold Gold Gold 0.9% at $ 362.69 An ounce axis or 0632 GMT, after reaching its maximum from April 22 before the session.
US Gold Futures rose 1.5% to $ 3,370.40.
“Gold prices have a strong increase to begin this week, with investors returning to the safe asset to protect against the volatility of the portfolio amid renewed tariffs of the president of the United States, Donald Trump,” said IG Market Yeap Jun Rong’s strategist.
On Sunday, Trump announced a 100% tariff on the films produced abroad, but revealed few details about how such tax would work.
On Monday, he said he intends to announce pharmaceutical tariffs in the next two weeks.
The decision of the Fed interest rate and the comments of the Fed President Jerome Powell on Wednesday are being closely monitored on the rate trajectory of the Central Bank. The Fed has maintained its policy rate in the range of 4.25% -4.50% since last December.
“Any Dovish signals could provide more support for gold, reinforcing its broader impulse,” Rong said.
The Fed will undoubtedly leave the rates unchanged on Wednesday, but the meeting can be the last one where the result is so cut and dry with Trump tariffs that throw a shadow of uncertainty about economic perspectives, according to a Reuters report.
“Fed officials will want to see evidence of the labor market and other hard data before cutting. We believe that this will take a couple of months and, therefore, we expect three 25 bp cuts in July, September and October,” Goldman Sachs said.
Non -winning ingots, a safeguard against political and financial agitation, thrives in a low interest rate environment.
Spot Silver increased 1.5% to $ 32.98 per ounce, platinum rose 1.4% to $ 972.25 and Palladium advanced 0.5% to $ 945.25.
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