Gold prices rise on Trump tariff threat.
Gold prices rose in Asian trade on Friday, recouping some recent losses after safe haven demand was buoyed by U.S. President Donald Trump threatening more trade tariffs, while geopolitical tensions in the Middle East also helped.
Strength in the dollar– which was headed for a weekly gain– kept gains in gold and most other metals subdued on Friday. But silver and platinum were set for strong weekly gains, vastly outperforming gold as they notched fresh multi-year highs this week.
Among industrial metals, U.S. copper futures fell sharply from recent peaks, seeing some profit-taking after Trump’s tariff threat drove stellar gains in the red metal earlier this week.
Trump’s Canada tariff threat, Middle East tensions boost havens
Trump on Thursday evening said he will impose 35% tariff on Canada from August 1, higher than his previously threatened 25% tariffs and also blindsiding Ottawa after some signs of improving trade relations.
The announcement sparked a risk-off move across major risk-driven assets, and spurred some gains in havens such as gold, and the yen.
On the geopolitical front, signs of little immediate deescalation in the Israel-Hamas war, as Jerusalem continued to launch attacks against the Gaza Strip, kept geopolitical tensions high in the Middle East.
US stock index futures fall.
U.S. stock index futures fell Friday after President Donald Trump said Canada will face 35% trade tariffs from next month, ramping up concerns over the impact of his tariff agenda.
Wall Street indices ended higher Thursday, with the S&P 500 and NASDAQ Composite posing new closing records, but sentiment remains fragile and the major averages are on pace to end the week little changed. The Dow Jones Industrial Average hovers just under the flat line on a weekly basis and the S&P and Nasdaq higher by less than 1%.
Trump on Thursday evening released a letter outlining a 35% trade tariff against Canada, effective from August 1. The new duties will be in addition to Trump’s recent sectoral tariffs.
IEA raises 2025 oil supply forecast.
The global oil market may be tighter than headline figures suggest, the International Energy Agency (IEA) said on Friday, even as supply growth continues to outpace demand. Refineries are ramping up activity to meet strong seasonal demand from travel and power generation, putting upward pressure on physical markets.
The IEA raised its global supply growth forecast by 300,000 barrels per day to 2.1 million bpd, while demand is expected to increase by just 700,000 bpd—highlighting a projected surplus.
But despite the revised forecasts, the IEA said increased refinery activity to meet summer travel and power needs is tightening the market, while the latest OPEC+ supply boost had little impact.
“The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,” the IEA noted in its monthly report. “Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.”
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