Gold prices edged higher in Friday’s Asian session, rebounding from sharp losses earlier in the week and positioning the precious metal for a solid weekly gain. Concerns over rising U.S. fiscal deficits and looming trade decisions from Washington helped buoy investor demand for safe-haven assets.
Spot gold climbed 0.5% to $3,341.34 an ounce, while August gold futures were up 0.2%, reaching $3,349.52 by 00:10 ET (04:10 GMT). Despite a nearly 1% drop on Thursday—triggered by a surprisingly strong U.S. employment report—gold remains up around 1.8% for the week, snapping a two-week losing streak.
Tariff Shock on the Horizon as Trump Moves Ahead with Trade Plan
President Donald Trump confirmed Thursday that the U.S. will begin notifying trading partners of new export tariffs as soon as Friday. Rather than engage in extended negotiations with over 170 nations, Trump said the U.S. will impose flat export duties of between 20% and 30%.
So far, formal trade agreements have only been finalized with the UK and Vietnam, along with a partial arrangement with China. Rising global trade tensions and policy uncertainty have lent additional support to gold, traditionally seen as a hedge during periods of economic and geopolitical friction.
Fiscal Concerns Fuel Bullion Support, But Strong Jobs Data Weighs
Investor appetite for gold this week was also driven by fiscal unease in the U.S., as lawmakers advanced a major tax-cut package that also includes increased border funding and scaled-back social spending. The legislation, which is expected to be signed by President Trump ahead of the July 4 deadline, is projected by the Congressional Budget Office to add $3.4 trillion to the federal debt, now exceeding $36 trillion.
However, the metal faced downward pressure Thursday after fresh labor market data showed the U.S. economy added more jobs than expected in June. The upbeat report dampened speculation about a near-term interest rate cut from the Federal Reserve.
With rate hike expectations dialed back, gold’s upside was limited—higher interest rates tend to weigh on gold, which offers no yield and becomes less attractive compared to income-generating assets.
Mixed Metal Moves Amid Dollar Strength
The U.S. Dollar Index edged 0.1% lower during Friday’s Asian hours but maintained most of its gains from the prior session, supported by the strong payroll figures.
Elsewhere in metals markets, platinum prices rose 0.5% to $1,385.80 per ounce, while silver dipped 0.3% to $37.00. Copper futures on the London Metal Exchange eased 0.3% to $9,923.65 per ton, and U.S. copper contracts slipped 0.4% to $5.115 per pound.
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