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(Bloomberg) -- Gold advanced as investors digested trade comments from US Treasury Secretary Scott Bessent while awaiting the Federal Reserve’s interest-rate decision.

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Bessent that some “very good” offers have been made to the US in negotiations with trading partners, reiterating that some deals may be announced as soon as this week. He also noted the possibility of a “substantial reduction” in tariffs on US goods, while noting there’s nothing in recent data that indicates the economy is in a recession. Gold prices have rallied in recent weeks over concerns that trade tensions will slow the global economy.

Meanwhile, Fed policymakers have mostly emphasized a need to wait and see how trade policies implemented last month affect the economy before changing US interest rates. They’re widely expected to hold rates at the conclusion of their meeting Wednesday, even despite Trump’s repeated criticism of Fed Chair Jerome Powell for not cutting. Precious metals, which bear no interest, tend to climb when borrowing costs are lowered.

Bullion’s status as an alternative asset has been reinforced by the market chaos unleashed by Trump’s aggressive trade policy. The precious metal has surged by more than a quarter this year, hitting a record just above $3,500 an ounce in April, before recently losing some ground. The ascent has been driven by haven buying, as well as by speculative demand in China and central-bank purchases.

Spot gold rose 1.9% to $3,398.85 an ounce as of 12:08 p.m. in New York. The Bloomberg Dollar Spot Index fell 0.1%. Silver, palladium and platinum climbed.

--With assistance from Sybilla Gross and Yihui Xie.

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