The traditional yellow metal rose sharply on Tuesday trading supported by the heat of geopolitical conflicts, trade policy uncertainties, market participants' anticipation ahead of the FOMC decision and Chairman Jerome Powell's press conference.
At 9.20 am, the price of gold was at $3,368.68, down 1.82% since it opened in early trading Wednesday in the Asian session.
Gold's attraction reflects deepening global instability as Israeli military threats in Gaza, Iraq-Syria offensive activities and India's missile launch on Pakistan further exacerbate regional conflicts.
These developments exacerbated risks in financial markets and strengthened demand for safe-haven assets like gold.
In addition, the heat of the trade war was still felt by the market when Donald Trump announced a 100% tariff on foreign films and restrictions on pharmaceutical imports, which rekindled fears of global conflict.
Increasing restrictions will continue to disrupt supply chains, making it difficult for most countries to conduct business peacefully.
