Gold rises 2pc on safe haven flows

SINGAPORE, May 23 (Reuters): Gold prices rose 2 per cent on Friday and were headed for their best week in six, as investors sought the safe-haven asset amid renewed tariff threats from US President Donald Trump and a weaker dollar.

Spot gold was up 1.6 per cent at $3,345.99 an ounce as of 0952 ET (1352 GMT). It rose as much as 2 per cent earlier in the session. Bullion has risen 4.5 per cent this week to touch a two-week high.

US gold futures also gained 1.6 per cent to $3,346.60.

"Trump has been on a tear the last 24 hours. Threatening 50 per cent tariffs on the EU as of June 1, biting Apple and hammering Harvard has stocks in a black mood, which is great for gold," said Tai Wong, an independent metals trader.

"Renewed tariff concerns on a low-liquidity day ahead of the long weekend can magnify moves."

Global stocks tumbled on Friday after Trump unleashed his latest unexpected trade bombshell by recommending 50 per cent tariffs on European Union imports from June 1. Trump also said that Apple would pay a 25 per cent tariff on iPhones that are sold in the United States but not made in the country.

Meanwhile, the Republican-controlled US House of Representatives on Thursday passed a sweeping tax and spending bill that would enact much of Trump's policy agenda and saddle the country with trillions of dollars more in debt.

Gold's appeal as a safe-haven asset increases in times of geopolitical and economic uncertainty.

Platinum added 0.3 per cent to $1,078.15, reaching its highest level since May 2023 earlier in the session.

Spot silver was steady at $33.08 an ounce, while palladium slipped 2.4 per cent to $990.93. Both the metals headed for weekly gains.