Gold gains on safe-haven demand

Gold prices rose for a third straight session on Friday, as US 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 0.5 per cent to $3,339.99 per ounce, as of 0755 GMT. US gold futures gained 0.8 per cent to $3,351.

“We’re seeing some growing demand for gold as a haven. There are investors looking for some safety asset 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 US would impose a 35 per cent tariff on imports from Canada and planned to impose blanket duties of 15 per cent or 20 per cent on most other trade partners.

This follows Wednesday’s announcement of a 50 per cnet tariff on US copper imports and a similar levy on goods from Brazil, along with tariff notifications sent earlier to other trading partners. 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 US fell unexpectedly to a seven-week low, indicating stable employment levels.

Reuters