Gold price climbs above $3,350 on new Trump tariff threats

In earlier years, such a move would have been a major headwind for the non-yielding gold, but that correlation has now weakened, as investors forgo higher interest payments for safe havens.

Gold extended its weekly rise on Friday to climb above the $3,350 mark, as investors fled to safety after US President Donald Trump reignited global trade concerns with fresh tariff threats.

Spot gold gained 1.6% to $3,351.95 an ounce by 10:35 a.m. ET, on track for its best week in six. US gold futures also shot up 1.7% to $3,352.10 an ounce in New York.

The rally comes after Trump dropped another surprise trade bombshell by recommending 50% tariffs on the European Union starting June 1. Separately, he threatened tech giant Apple with a 25% tariff on iPhones that are not manufactured domestically.

The equities tumbled after the announcement, and the US dollar also eased.

Bullion now sits roughly $150 below the all-time-high reached last month. For the year, it has surged by more than 25% as the fallout from the US-led tariff war sent investors fleeing for safe-haven assets.

Adding to gold’s appeal are rising concerns about the US government’s fiscal position. Following Moody’s US credit rating downgrade last week, investors are now worried that Trump’s signature tax bill — which passed the House on Thursday — could boost the already swelling deficit.

“As Moody’s downgrade signals growing concern over US credit stability and inflation fears linger, investors are seeking safety in physical gold. Ultimately, this shift in security needs is driving up prices, and by the looks of things, this is just the beginning,” said Rick Kanda, managing director at The Gold Bullion Company.

Yields on 10-year US Treasuries pushed higher this week, hovering around 4.5%. In earlier years, such a move would have been a major headwind for the non-yielding gold, but that correlation has now weakened, as investors forgo higher interest payments for safe havens.