Update or Insert (multiple rows and columns) from subquery in PostgreSQL

For the UPDATE

Use:

UPDATE table1 
   SET col1 = othertable.col2,
       col2 = othertable.col3 
  FROM othertable 
 WHERE othertable.col1 = 123;

For the INSERT

Use:

INSERT INTO table1 (col1, col2) 
SELECT col1, col2 
  FROM othertable

You don't need the VALUES syntax if you are using a SELECT to populate the INSERT values.

UPDATE table1 SET (col1, col2) = (col2, col3) FROM othertable WHERE othertable.col1 = 123;

OMG Ponies's answer works perfectly, but just in case you need something more complex, here is an example of a slightly more advanced update query:

UPDATE table1 
SET col1 = subquery.col2,
    col2 = subquery.col3 
FROM (
    SELECT t2.foo as col1, t3.bar as col2, t3.foobar as col3 
    FROM table2 t2 INNER JOIN table3 t3 ON t2.id = t3.t2_id
    WHERE t2.created_at > '2016-01-01'
) AS subquery
WHERE table1.id = subquery.col1;