Gold prices gained on Friday, heading for a 2% weekly rise, after former President Donald Trump announced that fresh tariffs would be imposed on several U.S. trading partners starting August 1. The move reignited investor interest in safe-haven assets amid renewed trade tensions.
Spot gold climbed 0.5% to $3,341.48 an ounce by 1:23 p.m. in Singapore, its highest level in weeks, as Trump revealed that his administration would begin issuing letters outlining the new tariff rates as early as Friday. “They’ll be fully covered,” Trump said late Thursday, adding that the tariffs would range from 10% to as high as 70%. He noted that 10 to 12 letters would be sent immediately, with more to follow over the coming days.
This latest tariff salvo is part of Trump’s ongoing pressure campaign on countries that have yet to finalize trade agreements with the U.S. A July 9 deadline had previously been set for reaching deals. So far, agreements have been secured with the United Kingdom and Vietnam, while a temporary truce with China has de-escalated tensions between the world’s two largest economies.
However, markets remain uneasy. A re-escalation of trade conflicts could weigh on global economic growth—a scenario that typically supports demand for gold as a safe-haven asset. The metal, which doesn’t yield interest, tends to perform well in times of economic uncertainty and low-rate environments.
Meanwhile, the Federal Reserve’s interest-rate outlook remains in flux. A stronger-than-expected U.S. payroll report on Thursday showed job gains and a lower unemployment rate, leading traders to reduce their bets on a rate cut at the Fed’s July meeting. While rising rates can pressure gold, the metal’s upward trajectory has remained intact amid broader economic and geopolitical jitters.
So far this year, gold has surged more than 25% and now sits just $160 shy of its all-time high reached in April. Much of the rally has been driven by investor unease over global trade dynamics, central bank demand, and the prospect of wider fiscal deficits.
Other precious metals were mixed. Silver held steady, while platinum and palladium posted gains. The Bloomberg Dollar Spot Index fell 0.2%, putting it on course for a 0.5% weekly decline, further supporting dollar-denominated gold prices.
In addition to the tariff news, markets are digesting the implications of Trump’s sweeping new fiscal package, which passed the House on Thursday. The Congressional Budget Office estimates the legislation could expand the federal deficit by $3.4 trillion over the next decade. The massive spending plan, while intended to stimulate growth, may also stoke inflation and raise concerns over U.S. debt sustainability—factors that could further increase demand for gold as a hedge.
With tensions simmering on multiple fronts—trade, fiscal policy, and monetary uncertainty—investors are once again turning to gold for stability in an increasingly volatile economic environment.
