Gold hit two-week high amid geopolitical tensions and Fed speculations

Gold prices surged to a two-week high on Tuesday as demand for safe-haven assets increased. Investors are now expressing concerns over new tariff proposals from US President Donald Trump, while also awaiting guidance from the Federal Reserve (Fed) regarding future monetary policy.

On Sunday, Trump announced plans to enact a 100% duty on foreign films, although he did not provide specific details on how this would be implemented. He also hinted that tariffs on pharmaceuticals could be on the way.

This week, all eyes are on the Fed's interest rate decision and Chairman Jerome Powell's remarks scheduled for Wednesday. US borrowing costs have remained steady at 4.25-4.50% since last December.

According to Reuters, the central bank is likely to keep rates on hold. However, this meeting may be the last time such a decision is easy, as growing uncertainty stemming from Trump's trade policies can influence the Fed's future actions. 

Gold in this context, which pays no interest, is traditionally viewed as a hedge against political and financial instability.