Gold rises over 2% on safe-haven flows after Trump’s renewed tariff threats

Gold prices rose more than 2% 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% to USD 3,362.70 an ounce by 1356 ET (1756 GMT). Bullion rose 5.1% this week to touch an over two-week high.

US gold futures settled 2.1% higher at USD 3,365.8.

“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 after Trump recommended 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 US but not made there.

The dollar eased 0.9%, 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 USD 3,500 mark, we can get a clean shot up to USD 3,800,” Daniel Pavilonis, senior market strategist at RJO Futures, said.

Platinum added 1.2% to USD 1,094.05 after hitting 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 rose 1.1% to USD 33.44, while palladium slipped 1.6% to USD 998.89. Both metals posted weekly gains.

(Reporting by Sarah Qureshi, Ashitha Shivaprasad, and Ishaan Arora in Bengaluru; Editing by Leroy Leo, Sahal Muhammed, and Vijay Kishore)