By Sarah Qureshi and Ashitha Shivaprasad
(Reuters) – Gold prices rose 2% on Friday and were headed for their best week in six, as investors sought the safe-haven asset amid renewed tariff threats from U.S. President Donald Trump and a weaker dollar.
Spot gold was up 1.6% at $3,345.99 an ounce as of 0952 ET (1352 GMT). It rose as much as 2% earlier in the session. Bullion has risen 4.5% this week to touch a two-week high.
U.S. gold futures also gained 1.6% to $3,346.60.
“Trump has been on a tear the last 24 hours. Threatening 50% tariffs on the EU as of June 1, biting Apple and hammering Harvard has stocks in a black mood, which is great for gold,” said Tai Wong, an independent metals trader.
“Renewed tariff concerns on a low-liquidity day ahead of the long weekend can magnify moves.”
Global stocks tumbled on Friday after Trump unleashed his latest unexpected trade bombshell by recommending 50% tariffs on European Union imports from June 1. Trump also said that Apple would pay a 25% tariff on iPhones that are sold in the United States but not made in the country.
The dollar eased 0.6%, making greenback-priced gold cheaper for foreign currency holders. [USD/]
Meanwhile, the Republican-controlled U.S. House of Representatives on Thursday passed a sweeping tax and spending bill that would enact much of Trump’s policy agenda and saddle the country with trillions of dollars more in debt.
Gold’s appeal as a safe-haven asset increases in times of geopolitical and economic uncertainty.
Platinum added 0.3% to $1,078.15, reaching its highest level since May 2023 earlier in the session.
“Above ground inventories (of platinum) have fallen to quite low levels and this is just triggering a physical tightness in the market,” said Giovanni Staunovo, UBS analyst.
Spot silver was steady at $33.08 an ounce, while palladium slipped 2.4% to $990.93. Both the metals headed for weekly gains.
(Reporting by Sarah Qureshi, Ashitha Shivaprasad and Ishaan Arora in Bengaluru; Editing by Leroy Leo)
