Updates with the latest moves, milestones

Investing.com-- Gold prices surged to hit a new record high in Asian trading on Tuesday, buoyed by sustained safe-haven appeal over elevated U.S.-China trade tensions, and concerns around President Donald Trump’s plan to overhaul the Federal Reserve.

As of 00:27 ET (04:27 GMT), Spot Gold jumped 1.7% to $3,482.76 per ounce, while Gold Futures expiring in June surged 1.9% to $3,491.20 an ounce.

Gold jumped more than 3% on Monday and has hit consecutive record highs in the previous three sessions, driven largely by escalating geopolitical risks, strong central bank demand, and persistent inflation concerns.

Trump mulls ousting Fed’s Powell, dollar hits 3-yr low

The latest rally was sparked by concerns surrounding U.S. monetary policy, after President Donald Trump unveiled plans to overhaul the Federal Reserve.

White House economic advisor Kevin Hassett said on Friday that President Trump and his team were continuing to study whether they could fire Fed Chair Jerome Powell.

Trump on Monday reiterated his call for the Fed to reduce rates, saying the U.S. economy could slow down if the Fed does not cut interest rates immediately.

Last week, Powell said that the central bank was not inclined to cut interest rates in the near future, citing the possible inflationary pressures and economic uncertainties stemming from the new tariffs.

These developments have stoked concerns about the independence of the Fed, sending ripples through financial markets.

The U.S. dollar remained weak after slumping to a three-year low on Monday against a basket of major currencies.

A weaker dollar tends to bolster demand for gold, as it makes the metal more affordable to investors holding foreign currencies.

US-China trade tensions remain elevated

China issued a stern warning to nations contemplating trade agreements with the U.S. that could undermine Chinese interests.

The Chinese Ministry of Commerce accused Washington of employing tariffs and monetary sanctions to coerce countries into limiting their trade with China.

Beijing emphasized that any such agreements detrimental to its interests would prompt reciprocal countermeasures.

This warning comes amid escalating tensions in the ongoing Sino-U.S. trade conflict, which has seen the U.S. impose tariffs of up to 145% on Chinese goods, leading to retaliatory duties from China.

Among other precious metals, Silver Futures gained 0.8% to $32.795 an ounce, while Platinum Futures rose 1% to $976.10 an ounce.

Copper hits 2-week high on weaker greenback

Copper prices extended on Tuesday to hit a two-week high as the greenback remained weak, but concerns of hefty U.S. tariffs on top importer China kept investors cautious.

Benchmark Copper Futures on the London Metal Exchange rose 1% to $9,311.60 a ton, while Copper Futures expiring in May gained 1.1% to $4.7713 a pound.