Gold hits one-week high on safe-haven demand, Fed decision loom

Gold prices climbed to a one-week high on Tuesday as rising concerns over U.S. President Donald Trump‘s tariff plans boosted safe-haven demand, while investors also kept a close tab on the upcoming Federal Reserve policy meeting.

FUNDAMENTALS

* Spot gold rose 0.1% to $3,337.69 an ounce to hit its highest level since April 29 earlier in the session, but it later retreated and was trading flat at $3,330.16, as of 0018 GMT. U.S. gold futures rose 0.5% to $3,338.30.

* U.S. President Donald Trump announced on Sunday a 100% tariff on movies produced overseas, reigniting concerns about the potential fallout of a global trade war.

* Trump also said on Monday he plans to announce pharmaceutical tariffs over the next two weeks. * On the radar this week is the Federal Reserve’s interest rate decision and Fed Chair Jerome Powell’s comments due on Wednesday to get clues on the U.S. central bank’s rate path. The Fed has held its policy rate in the 4.25%-4.50% range since December.
* The Fed will doubtless leave interest 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.
* Non-yielding bullion, a safeguard against political and financial turmoil, also thrives in a low interest rate environment.
* However, U.S. Treasury Secretary Scott Bessent on Monday said Trump’s tariff, tax-cut and deregulation agenda would work together to drive long-term investment to the U.S. economy.

* Among other metals, spot silver rose 0.1% to $32.53 an ounce, platinum was steady at $959.30 and palladium was unchanged at $940.50.