Gold prices extended sharp gains in Asian trade on Tuesday (06/05) as safe-haven demand for bullion revived after the announcement of new US tariffs, while investors remained cautious ahead of the Federal Reserve's policy meeting starting later in the day.

At 02:16 ET (06:16 GMT), spot gold was up 1% at $3,366.95 an ounce, while gold futures expiring in June jumped 1.5% to $3,373.75 an ounce.

The yellow metal surged nearly 3% on Monday, erasing most of its losses recorded last week.

Gold prices hit a record high last month, just above $3,500 an ounce.

Gold rises on new Trump tariffs; Fed decision imminent

President Donald Trump signed an executive order on Monday to boost domestic pharmaceutical manufacturing and warned that tariffs on the sector could be imposed within two weeks.

A day earlier, he had instructed his administration to impose 100% tariffs on all foreign-made films in the U.S.

The moves come amid ongoing uncertainty surrounding U.S.-China trade tensions.

U.S. Treasury Secretary Scott Bessent told CNBC on Monday that he expects progress in U.S.-China trade talks in the coming weeks. China said last week that it is evaluating the possibility of trade talks with the U.S.

Hopes of a dialogue on trade tensions eased some market fears initially, but the new tariffs and ongoing uncertainty pushed investors toward safe-haven assets.

Investors are also treading cautiously ahead of the Fed's policy meeting that begins later.

The Fed is widely expected to keep interest rates unchanged as policymakers have taken a cautious stance to assess the impact of Trump's tariffs on inflation.

The U.S. Dollar Index was largely unchanged in Asian trading on Tuesday.

Among other precious metals, silver futures jumped 2.4% to $33.275 an ounce, while platinum futures rose 1% to $974.10 an ounce. (Newsmaker23)

Source: Investing.com