Gold prices surged to their highest level in two weeks on Tuesday, driven by mounting concerns over U.S. tariff plans announced by President Donald Trump and a renewed interest in safe-haven investments.

As of 02:24 GMT, spot gold rose by 1.4% to $3,380.92 per ounce, marking its peak since April 22 earlier in the session.

Meanwhile, U.S. gold futures increased by 2% to $3,389.90.

Market analyst Yeap Jun Rong highlighted that gold experienced a strong uptick at the start of the week as investors returned to safe-haven assets to hedge against portfolio volatility, spurred by renewed fears surrounding President Trump’s tariff policies.

On Sunday, President Trump announced a 100% tariff on all films produced outside the United States, although he did not elaborate on the specifics of how these tariffs would be implemented.

Additionally, he indicated plans to announce tariffs on pharmaceuticals within the next two weeks.

Investors are closely monitoring this week's Federal Reserve meeting regarding interest rates, with attention on statements from Chairman Jerome Powell scheduled for Wednesday, as they seek insights into the direction of monetary policy.

The U.S. central bank has maintained its interest rate in a range between 4.25% and 4.50% since December.

Yeap noted that any signs of easing may provide further support for gold, bolstering its upward momentum.

A Reuters report indicated that the Federal Reserve is likely to keep interest rates unchanged, highlighting that this meeting may be pivotal due to tariffs overshadowing economic forecasts.

Gold, which does not yield interest, is perceived as a hedge against political and financial disruptions, particularly when interest rates are low.

In other precious metals, silver rose by 1.5% to $32.99 per ounce, platinum climbed 1.3% to $971.24, and palladium increased by 0.5% to $945.75.