Gold records its best weekly performance in 6 weeks due to concerns about tariffs and the decline of the dollar.
Gold prices hit their highest level in over two weeks, supported by renewed trade concerns and a weaker dollar amid escalating U.S. threats of imposing new tariffs and growing worries about the U.S. public finances.
Spot gold closed 2.1% higher at $3,362.70 per ounce, marking a weekly gain of 5.1%, the largest in six weeks. U.S. gold futures also settled at $3,365.8 per ounce.
The dollar fell more than 1% during the week, recording its worst performance since early April, making gold cheaper for holders of other currencies.
President Donald Trump's statements raised investor concerns after he announced via "Truth Social" platform his recommendation to impose a 50% tariff on European Union imports, saying: "It was very hard dealing with them. Our discussions with them lead to no results!". He added that these tariffs will be effective starting June 1.
Tim Waterer, Senior Market Analyst at "KCM Trade", commented: "The positive momentum seen during the week due to trade optimism gave way to concerns about the financial situation in the United States, bringing gold back into investors' focus due to hesitancy in investing in U.S. assets."
He expected that "gold will remain above $3,000 amid continued pressures on global markets due to tariffs, rising U.S. debt, and geopolitical tensions."
In a related context, the U.S. House of Representatives approved a comprehensive tax and spending bill, adding trillions of dollars to the government debt, while the Iranian Foreign Minister warned of the consequences of any potential Israeli attack on Iranian nuclear facilities.
As for the performance of other metals, silver rose 0.3% to $33.16 per ounce, while platinum increased by 0.9% to $1,091.43. On the other hand, palladium fell by 0.1% to $1,014.
