Gold jumped more than 2% to around $70 in Monday trading as the US dollar's position was slightly affected despite strong US economic data.
At 9.20 am, the price of gold was at $3,360.66, up 0.77% since it opened in early trading on Tuesday in the Asian session.
Market sentiment improved following a report by the Institute for Supply Management (ISM) that was reassuring in strengthening the US economy. The report gave an impression of the increase in prices due to President Donald Trump's tariff imposition.
Last weekend, Trump announced a 100% tariff on foreign-produced films and urged the Federal Reserve (Fed) to lower interest rates.
However, he canceled his intention to fire Fed Chairman Jerome Powell before his term ends in May 2026.
He also said that the US would meet with many countries including China to discuss the tariff issue, with Beijing being the priority in their discussions for now.
Meanwhile, market participants will be looking forward to the Fed's monetary policy meeting early Thursday morning and they expect it to remain steady.
