Gold prices rose more than 2% on Friday and posted their best week in six, as investors sought safe-haven assets amid new tariff threats from U.S. President Donald Trump and a weaker dollar.

Spot gold rose 2.1% to $3,362.70 an ounce by 1:56 p.m. ET (1756 GMT). Bullion has gained 5.1% this week to hit its highest in more than two weeks.

U.S. gold futures settled 2.1% higher at $3,365.8.

"Trump has been on a rampage in the past 24 hours. Threatening 50% tariffs on the EU from June 1, attacking Apple and bashing Harvard have put stocks in a sour mood, which is good for gold," said Tai Wong, an independent metals trader.

"Resurfacing tariff concerns on a low-liquidity day ahead of a long holiday could amplify the moves."

Global stocks fell after Trump recommended a 50% tariff on European Union imports starting June 1. Trump also said Apple would pay a 25% tariff on iPhones sold in the U.S. but not made there.

The dollar (.DXY), opens new tab , fell 0.9%, making dollar-priced gold cheaper for holders of foreign currencies.

On Thursday, the Republican-controlled U.S. House of Representatives passed a tax and spending bill that would add trillions of dollars to the national debt.

Gold's safe-haven appeal is heightened by geopolitical and economic uncertainty.

"If we break $3,500, we could have a net upside of $3,800," said Daniel Pavilonis, senior market strategist at RJO Futures.

Platinum rose 1.2% to $1,094.05 after hitting its highest since May 2023 earlier in the session.

"Aboveground (platinum) inventories have come down to quite low levels and this is triggering physical tightness in the market," said Giovanni Staunovo, an analyst at UBS.

Spot silver rose 1.1% to $33.44, while palladium fell 1.6% to $998.89. Both metals posted weekly gains. (alg)

Source: Reuters