In a climate charged with geopolitical tensions and economic uncertainty, gold has once again emerged as the asset of choice for cautious investors. On Tuesday, the precious metal surged to a two-week high, with spot gold climbing 0.7% to $3,357.63 per ounce, and U.S. gold futures rising 1.3% to $3,366.10.

This uptick is largely attributed to renewed safe-haven demand, spurred by U.S. President Donald Trump's unexpected announcement of a 100% tariff on foreign-produced films, alongside plans to impose pharmaceutical tariffs in the coming weeks . These protectionist measures have heightened market volatility, prompting investors to seek refuge in gold.

The Federal Reserve's upcoming policy meeting has also captured market attention. While the central bank is widely expected to maintain the current interest rate range of 4.25% to 4.50%, analysts suggest that any dovish signals could further bolster gold's rally . Goldman Sachs forecasts potential rate cuts in July, September, and October, which would enhance gold's appeal as a non-yielding asset in a low-interest-rate environment.

Beyond these immediate factors, robust fundamentals continue to support gold's ascent. Central banks have actively increased their gold holdings, with purchases totaling around 740 tonnes in the first 10 months of 2024, as a hedge against uncertainties and a strategy for reserve diversification.

Other precious metals have mirrored gold's gains, with silver up 1.7%, platinum advancing 1.5%, and palladium rising 1% . As global markets navigate the complexities of trade policies and economic indicators, gold's role as a safe-haven asset remains pivotal.

Investors now await the Federal Reserve's decision and Chair Jerome Powell's comments scheduled for Wednesday, seeking guidance on future policy moves that could further influence gold's trajectory.