Gold experiences a surge exceeding 2% driven by heightened safe-haven demand in response to concerns regarding Trump’s tariffs. Gold prices experienced a notable increase of over 2% on Friday, achieving their strongest weekly performance in six weeks, as investors turned to the safe-haven asset for protection. Renewed tariff threats from U.S. President Donald Trump, coupled with a depreciating dollar, have driven the rally. Platinum experienced an uptick attributed to constrained market dynamics, whereas silver increased in value and palladium declined, with all three metals recording weekly gains.
Gold prices increased by over 2% on Friday, marking their strongest weekly performance in six weeks, as investors turned to the safe-haven asset in response to renewed tariff threats from U.S. President Donald Trump and a declining dollar. Spot gold increased by 2.1%, reaching $3,362.70 per ounce. Bullion increased by 5.1% this week, reaching a peak not seen in over two weeks. U.S. gold futures concluded the trading session with an increase of 2.1%, reaching a price of $3,365.8.
Trump has exhibited a notable surge in activity over the past 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,” stated Tai Wong, an independent metals trader. “Renewed tariff concerns on a low-liquidity day preceding the extended weekend may amplify market movements.”
Global equities experienced a significant decline following Trump’s suggestion of imposing 50% tariffs on imports from the European Union starting June 1. Trump stated that Apple would incur a 25% tariff on iPhones sold in the U.S. that are not manufactured domestically. The dollar declined by 0.9%, resulting in a lower cost of gold priced in dollars for holders of foreign currencies. On Thursday, the Republican-controlled U.S. House of Representatives enacted a comprehensive tax and spending bill projected to increase the national debt by trillions of dollars.
The allure of gold as a safe-haven asset intensifies amid geopolitical and economic instability. “If we break above the $3,500 mark, we can get a clean shot up to $3,800,” stated Daniel Pavilonis, senior market strategist at RJO Futures. Platinum experienced an increase of 1.2%, reaching a value of $1,094.05, following a peak not seen since May 2023 earlier in the trading session. “Above ground inventories of platinum have fallen to quite low levels, triggering a physical tightness in the market,” stated Giovanni Staunovo, UBS analyst. Spot silver increased by 1.1% to $33.44, whereas palladium decreased by 1.6% to $998.89. Both metals recorded weekly increases.