Gold climbs as US tariff threats stir trade tensions 

WASHINGTON: Gold prices inched higher on Friday as markets reacted to fresh US tariffs that deepened concerns over global trade tensions. However, a stronger dollar limited further gains in the precious metal. 

As of 0245 GMT, spot gold was up 0.3 per cent at $3,333.67 per ounce, while US gold futures rose 0.6 per cent to $3,345.10.

The uptick followed US President Donald Trump’s announcement of a 35 per cent tariff on Canadian imports, alongside plans for blanket duties of 15 to 20 per cent on most other trading partners. These tariffs are expected to take effect from August 1. 

Trump’s move builds on earlier measures unveiled on Wednesday, including a 50 per cent tariff on US copper imports and similar levies on goods from Brazil. Notifications were also sent to other countries, such as Japan and South Korea, signalling broader trade restrictions. 

“Even though Trump’s trade war rhetoric has returned, gold hasn’t seen the strong safe-haven boost it once did. Investors seem more accustomed to both the tariff drama and the president’s approach,” said Tim Waterer, Chief Market Analyst at KCM Trade. 

The US dollar index was on course for its best weekly performance since late February, making dollar-denominated gold more expensive for buyers using other currencies. 

“The simultaneous climb in both gold and the dollar likely capped the metal’s gains,” Waterer added. 

On the economic front, US weekly jobless claims unexpectedly dropped to a seven-week low, suggesting steady employment levels despite a slower labour market. The data reduced expectations that the Federal Reserve might cut interest rates soon. 

Gold typically performs well in times of economic uncertainty and low interest rates as it becomes a more attractive store of value. 

Meanwhile, the White House escalated its criticism of Federal Reserve Chair Jerome Powell. A senior official accused Powell of “gross mismanagement” of the central bank, citing budget deficits and rising costs.

In other precious metals, spot silver rose 0.4 per cent to $37.17 per ounce, palladium edged up 0.2 per cent to $1,143.55, while platinum dipped 0.2 per cent to $1,358.61.

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