Driven by a weaker dollar and safe-haven demand, gold prices ended their days of decline and rose by more than 2% on Monday (5th), while investors are waiting for the results of the US Federal Reserve's (Fed) decision meeting this week.

Gold futures in New York rose 2.4% to $3,322.3 an ounce; the spot price of gold rose 2.3% to $3,315.09 an ounce.

On Sunday, U.S. President Trump announced a 100% tax on all foreign films, reigniting investors' concerns about the potential consequences of a global trade war.

"We are seeing continued safe-haven demand flowing in, keeping gold prices elevated, and prices will remain above $3,000, at least in the short term," said Kitco Metals analyst Jim Wyckoff.

"I don't think the Fed will make any adjustments to interest rates at this meeting, but we will also watch to see if the Fed leans to one side or the other," he said.

Traders await Fed Chairman Jerome Powell's post-meeting press conference to gauge the direction of the Fed's interest rates. The Fed has kept its benchmark interest rate at 4.25 to 4.50 percent since December last year.

The Fed will announce its decision early Thursday morning Taiwan time. The market generally expects it to remain on hold, but Trump's tariff policy has cast a cloud of uncertainty over the economic outlook. This may be the last meeting with such a clear expected outcome.

The price of gold has soared 26.3% this year and has set new historical records many times. Goldman Sachs expects gold to continue to outperform silver, but points out that because there is a strong correlation with capital flows, the hot demand for gold this year also has the opportunity to drive up silver prices.