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Gold prices extended strong gains in Asian trading on Tuesday, as a renewed wave of U.S. tariff announcements underpinned safe-haven demand for the metal, while investors remained on edge ahead of the Federal Reserve’s policy decision later in the day.
Spot gold rose 1% to $3,366.95 per ounce by 02:16 ET (06:16 GMT), while gold futures expiring in June jumped 1.5% to $3,373.75 an ounce. Monday’s nearly 3% rally erased much of last week’s losses and brought the metal back within reach of its record high of just over $3,500 an ounce set last month.
The latest rebound in bullion was driven by President Donald Trump’s executive order on Monday aimed at boosting domestic pharmaceutical manufacturing. Trump also warned of new import tariffs on pharmaceutical products within the next two weeks. The move follows his directive on Sunday to impose a 100% tariff on foreign-produced films distributed in the U.S., further stoking trade tensions.
These developments have renewed concerns over a deepening trade rift between the United States and its major partners, particularly China. Although Treasury Secretary Scott Bessent indicated that progress in U.S.-China trade talks could emerge in the coming weeks, uncertainty remains high. China last week said it was still evaluating the possibility of reopening trade discussions with Washington.
While early signs of diplomatic engagement had helped temper market fears, the escalation of tariff threats has pushed investors back into safe-haven assets like gold, seen as a hedge against geopolitical and economic instability.
The Federal Reserve’s two-day policy meeting also looms large on the horizon. The central bank is widely expected to keep interest rates unchanged, maintaining a cautious tone as it gauges the impact of the Trump administration’s tariff measures on inflation and broader economic momentum.
The U.S. Dollar Index traded flat in Asian markets, offering little resistance to gold’s upside.
Elsewhere in the precious metals complex, silver futures surged 2.4% to $33.275 an ounce, while platinum futures gained 1% to trade at $974.10 an ounce.
Copper prices also edged higher, supported by a softer dollar and expectations of improved demand from China. Benchmark copper futures on the London Metal Exchange rose 0.7% to $9,462.65 a ton, while copper futures expiring in July were steady at $4.7093 a pound. Traders are now focused on upcoming Chinese trade data, which could offer deeper insight into global demand trends and broader commodity market dynamics.
