Gold prices rose more than 2 percent on Friday and logged their best week in six, as investors sought the safe-haven asset amid renewed tariff threats from US President Donald Trump and a weaker dollar.
Spot gold gained 2.1 percent to $3,362.70 an ounce.Bullion rose 5.1 percent this week to touch an over two-week high.
US gold futures settled 2.1 percent higher at $3,365.8.
“Trump has been on a tear the last 24 hours. Threatening 50 percent 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 after Trump recommended 50 percent tariffs on European Union imports from June 1. Trump also said that Apple would pay a 25 percent tariff on iPhones that are sold in the US but not made there.
The dollar eased 0.9 percent, making greenback-priced gold cheaper for foreign currency holders.
On Thursday, the Republican-controlled US House of Representatives passed a sweeping tax and spending bill that would add trillions of dollars to the country’s debt.
Gold’s appeal as a safe-haven asset increases with geopolitical and economic uncertainty.
“If we break above $3,500 mark, we can get a clean shot up to $3,800,” Daniel Pavilonis, senior market strategist at RJO Futures, said.
Platinum added 1.2 percent to $1,094.05 after hitting its highest level since May 2023 earlier in the session.
