Gold gains on safe-haven demand as Trump expands trade war
Gold prices rose for a third straight session on Friday, as U.S. President Donald Trump's announcement of new tariffs on Canada and broader tariff threats against other trading partners lifted demand for the safe-haven asset.
Spot gold was up 0.4% at $3,334.99 per ounce as of 0918 GMT. U.S. gold futures gained 0.6% to $3,345.30.
"We're seeing some growing demand for gold as a haven. There are investors looking for some safety assets despite stock markets hitting highs. And any dip in gold is seen as a buying opportunity now," said Carlo Alberto De Casa, an external analyst at Swissquote.
On Thursday, Trump said the United States would impose a 35% tariff on imports from Canada and planned to impose blanket duties of 15% or 20% on most other trade partners.
This followed Wednesday's announcement of a 50% tariff on U.S. copper imports and a similar levy on goods from Brazil, along with tariff notifications sent to other trade partners earlier.
Trump also said the European Union could receive a letter on tariff rates by Friday, throwing into question the progress of trade talks between Washington and the 27-nation bloc.
"Rising trade tensions have reinvigorated demand for haven assets such as gold amid the prospect of an economic slowdown. The more dovish Fed is also boosting investor appetite," analysts at ANZ wrote in a note.
Data on Thursday showed weekly jobless claims in the U.S. fell unexpectedly to a seven-week low, indicating stable employment levels.
Federal Reserve Governor Christopher Waller on Thursday reiterated his belief the central bank could cut interest rates at its policy meeting later this month.
Meanwhile, Fed Bank of San Francisco President Mary Daly said two rate cuts remain on the table for this year.
Lower rates boost non-yielding gold's appeal.
Elsewhere, spot silver rose 1% to $37.42 per ounce, platinum fell 0.7% to $1,350.65 and palladium climbed 2.8% to $1,174.06.
Source: Reuters
