Gold surged to a new high near $4,150 as the latest trade tensions between the United States and China caused investors to shift capital to safe-haven assets.
Fed Chairman Jerome Powell's statement scheduled for today will also be in the market's focus.
At 9.15 am, gold prices were at $4,142, up 0.77% since it opened early Tuesday in Asian trading.
Escalating trade tensions between the US and China have reignited fears of a trade war between the world's two largest economies, boosting safe-haven assets such as gold.
US President Donald Trump announced on Friday that he would impose new trade measures against Beijing, including a 100% tariff on all Chinese goods and export controls on critical US-developed software, which will take effect on November 1.
However, Trump took a less assertive stance on Sunday, saying that everything would be fine and that the US did not want to 'hurt' China.
Expectations are rising for further interest rate cuts by the US Fed, which is contributing to gold's rise. Lower interest rates could reduce the cost of gold holders, supporting the precious metal to move higher.
