Gold Edges Higher on Safe-Haven Demand Amid Tariff and Geopolitical Tensions; Silver and Platinum Extend Rally
Gold prices rose during Asian trading hours on Friday, recovering some recent losses as demand for safe-haven assets was lifted by renewed trade tensions and ongoing geopolitical unrest. U.S. President Donald Trump’s latest threat to impose higher tariffs, along with persistent conflict in the Middle East, contributed to the uptick.
However, strength in the U.S. dollar—which was poised for a weekly gain—kept gold and most metals from rising significantly. In contrast, silver and platinum continued to outperform, both reaching multi-year highs and heading for strong weekly gains.
Metals Mixed as Markets React to Trade and Geopolitical Risks
Spot gold increased 0.5% to $3,341.27 an ounce, while September gold futures rose 0.9% to $3,354.60/oz as of 01:28 ET (05:28 GMT).
The gains came after Trump announced plans Thursday evening to raise tariffs on Canadian imports to 35% starting August 1—up from the previously proposed 25%—surprising markets and straining recent progress in U.S.-Canada trade relations. The move triggered a risk-off sentiment, leading to increased demand for safe-haven assets like gold and the Japanese yen.
At the same time, geopolitical uncertainty remained elevated as Israel continued military strikes on the Gaza Strip, with little visible progress in U.S.-led ceasefire efforts despite claims from the White House that a deal was near. These developments added to gold’s appeal, although its overall weekly performance was muted due to a stronger dollar and uncertainty over the U.S. interest rate outlook. Gold continues to trade within a range of $3,300 to $3,500 an ounce—levels seen throughout much of the year.
Silver and Platinum Outperform Gold
Silver and platinum prices held near multi-year highs and were on track for weekly gains of 1.9% to 3%, significantly outpacing gold. Both metals have seen a surge in recent weeks, driven by growing speculation over tighter supply and rising demand forecasts.
Platinum, which rose 0.3% to $1,420.25/oz, was set to log its sixth straight weekly gain and hovered near an 11-year high. The metal has been supported by a bullish industry outlook released in late May.
Silver also extended its rally, rising 2.2% to $38.140/oz—its highest level in nearly 14 years—marking a third consecutive week of gains.
Copper Sees Pullback After Record Surge
In the industrial metals space, U.S. COMEX copper futures fell 1.2% to $5.5620 per pound, continuing a pullback following earlier gains spurred by Trump’s threat of a 50% tariff on the metal. While copper briefly reached record highs earlier this week, investors appeared to lock in profits on Friday.
Benchmark copper futures on the London Metal Exchange remained flat at $9,700.55 per ton.
