Gold prices rallied on Friday to score the largest weekly gain in more than a month. Investors flocked to the precious metal as a safe haven on the back of mounting trade tensions and a falling U.S. dollar.

Spot gold was up 1.6% at $3,345.99 per ounce as of 0952 ET (1352 GMT), having touched its highest since Oct. 23 at $3,351.22 with a 2% gain. U.S. gold futures also rose 1.6% to $3,346.60. Bullion rose 4.5% for the week, its best performance since early April.
The increase came after President Donald Trump proposed a 50% tariff on imports from the European Union beginning June 1 if trade talks are not successful. He also said he would impose a 25% tax on any iPhones made abroad and sold in America — a move that could have a direct impact on companies such as Apple. The surprise moves roiled global markets, sending major stock indexes lower and pushing investors toward the safety of gold.
"The return of the tariff issues ahead of a long weekend has ratcheted up market volatility," said Tai Wong, an independent metals trader. "That kind of uncertainty does tend to bring investors to gold."
The U.S. dollar index slid 0.6%, which makes dollar-denominated gold more affordable for investors who use other currencies. Gold's appeal as an investment increases in periods of a weaker dollar.
In addition to those worries, the U.S. House of Representatives approved a massive tax and spending bill on Thursday. Analysts say the bill would add massively to the national debt, further eroding confidence in U.S. fiscal health.
During geopolitical and economic uncertainty, Gold's status as a safe haven is further enhanced. A trade dispute and fiscal worries have made it more attractive to investors seeking a refuge.
Elsewhere in the precious metals market, platinum rose 0.3 percent to $1,078.15 after rising to its highest since May 2023. Spot silver remained relatively stable at $33.08 per ounce, while palladium experienced a 2.4% decline to $990.93. Silver and platinum are also on track to post gains this week.
Going forward, trading sentiment is expected to be driven by the U.S.-EU trade negotiations and local fiscal policies. " The course of gold prices may depend on these things as well as the chart of the dollar and economic indicators overall.