Gold rises due to tariff threat against Europe

Gold rose 2% on Friday to post its best weekly performance in six weeks, as investors sought the safe-haven asset amid renewed tariff threats from U.S. President Donald Trump and a weaker dollar.

Spot gold gained 2% to $3,359.96 an ounce. The bullion rose 4.9% for the week to hit a two-week high. U.S. gold futures rose 2% to $3,360.10. They gained 4.82% for the week.

The dollar fell 0.7%, making gold cheaper for foreign currency holders.

The Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill on Thursday that would add trillions of dollars to the nation's debt.

Two weeks ago, Moody's cut the United States' credit rating, citing concerns about its growing $36 trillion debt pile. Gold's appeal as a safe haven asset is increasing with geopolitical and economic uncertainty.

Platinum rose 1.2% to $1,094.25 in early trading, its highest level since May 2023.

Spot silver rose 0.8% to $33.33, while palladium fell 1.5% to $999.29. Both metals posted weekly gains.

Copper at three-week highs

Copper prices hit a more than three-week high on Friday, boosted by a weak dollar and concerns about problems at a major mine in the Democratic Republic of Congo.

U.S. Comex copper futures rose 3 percent to $4.82 a pound, their highest level since April 30. Benchmark three-month copper on the London Metal Exchange (LME) gained 1.2 percent to $9.617 a tonne, its highest level since May 14. Copper rose 5.28 percent for the week.

Base metal prices pared their gains slightly earlier after U.S. President Donald Trump threatened 50% tariffs on European Union products, but recovered as the dollar index fell to a more than three-week low. A weaker dollar makes metals priced in the greenback more attractive to buyers using other currencies.

Copper also rose on concerns about the massive Kamoa-Kakula copper mine in the Democratic Republic of Congo, Africa's largest copper producer and one of the world's largest.

Aluminum on the LME rose 0.4% to $2,466.50 a tonne; zinc added 0.3% to $2,705; nickel gained 0.7% to $15,605; lead increased 1.1% to $1,991; and tin rose 1.6% to $32,910.