Gold price climbs to two-week high as Trump unleashes new tariffs

[Ben Graham]

Gold climbed to its highest in two weeks on Friday as investors rushed toward the safe-haven metal after US President Donald Trump widened the global trade war with a new wave of tariffs.

Spot gold gained as much as 1.2% to $3,368.88 per ounce during the early hours of trading, before settling around the $3,350 mark. US gold futures rose 1.6% to $3,381.60 an ounce.

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Meanwhile, global equities fell after Trump ramped up his tariff assault on Canada with a 35% tariff and unveiled plans to impose blanket tariffs of 15% or 20% on most other trading partners.

The US President also announced a 50% tariff on copper imports earlier this week, sending the industrial metal’s price to a record.

“We are in an environment where the uncertainty premium is back in the market, and gold is getting a safe-haven bid,” Aakash Doshi, global head of gold strategy at State Street Global Advisors, told Reuters.

“I think the range in the third quarter is most likely between $3,100 and $3,500. It’s been a very strong first half of the year, and I believe we’re now in a bit more of a consolidation phase.”

Further supporting bullion is the rising likelihood of a US rate cut later this month following the latest comments by Federal Reserve governor Christopher Waller. A lower borrowing rate typically benefits gold, as the metal yields no interest.

Elsewhere, gold’s sister metal silver hit its highest level since September 2011 following a surge in the US premiums. With these gains, the silver-to-gold ratio has risen far above historical norms.

Both metals have gone up by 27% year to date.

(With files from Reuters)