Gold prices edged higher during Friday’s Asian session as investor appetite for safe-haven assets returned, driven by renewed trade tensions and instability in the Middle East. The gains followed several sessions of decline, though gold continues to underperform compared to silver and platinum, which are both seeing stronger momentum.
Despite a firm U.S. dollar—which is on track to notch weekly gains—gold managed to regain some ground. However, the strength of the dollar continued to cap the metal’s upside, limiting broader enthusiasm in the precious metals market.
Trump’s New Tariffs Spark Risk Aversion
The uptick in gold was fueled in part by U.S. President Donald Trump’s latest move to impose a 35% tariff on Canadian imports starting August 1. The move caught Ottawa off guard and added fresh uncertainty to global trade dynamics, contributing to a pullback in risk assets and a shift toward traditional safe havens like gold and the Japanese yen.
Middle East Conflict Adds to Market Caution
Geopolitical risk also played a role in gold’s rebound. Ongoing conflict between Israel and Hamas showed no signs of de-escalation, with continued military activity around the Gaza Strip. While U.S. diplomatic efforts to broker a ceasefire remain active, progress has been slow, keeping regional tensions elevated.
Spot gold rose 0.5% to $3,341.27 an ounce, while gold futures for September delivery advanced 0.9% to $3,354.60/oz as of 01:28 ET (05:28 GMT). Despite Friday’s gains, gold remains within a broad trading range of $3,300–$3,500 per ounce, where it has hovered for much of the year amid uncertainty over U.S. monetary policy.
Silver and Platinum Continue to Outshine Gold
In contrast to gold’s muted performance, both silver and platinum have enjoyed robust gains. Silver futures jumped 2.2% to $38.14/oz, marking their highest level in nearly 14 years and their third consecutive weekly advance. Platinum also held near an 11-year high at $1,420.25/oz, with prices rising for a sixth straight week thanks to optimism around tightening supply and strong industrial demand.
Copper Cools After Strong Rally
Among industrial metals, copper prices pulled back following a strong surge earlier in the week that was also linked to Trump’s trade threats. COMEX copper futures dropped 1.2% to $5.5620 per pound amid profit-taking, while benchmark contracts on the London Metal Exchange remained steady at $9,700.55 per ton.
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