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 gained 2% to $3,359.96 an ounce by 1219 ET (1618 GMT). Bullion has risen 4.9% this week to touch a two-week high.
U.S. gold futures climbed 2% to $3,360.10.
“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 U.S. but not made there.
The dollar eased 0.7%, making greenback-priced gold cheaper for foreign currency holders. [USD/]
On Thursday, the Republican-controlled U.S. 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% to $1,094.25 earlier in the session, its highest level since May 2023.
“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 0.8% to $33.33, while palladium slipped 1.5% to $999.29. Both metals headed for weekly gains.
(Reporting by Sarah Qureshi, Ashitha Shivaprasad and Ishaan Arora in Bengaluru; Editing by Leroy Leo and Sahal Muhammed)
