- U.S. non-farm payrolls report due at 1230 GMT
- China to impose tariffs of 34% on all US goods from April 10
- Silver headed for its worst week since December 2023
April 4 (Reuters) - Gold gained on Friday after reaching a record high in the previous session, as investors turned to the safe-haven asset amid heightened global trade conflict following China's retaliation with new tariffs against U.S. President Trump's extensive levies.
Spot gold firmed 0.5% at $3,128.76 an ounce as of 1116 GMT, after falling 1% earlier in the session, while U.S. gold futures were up 0.9% at $3,151.20.
Spot prices hit a record $3,167.57 on Thursday as investors rushed for safe-haven assets after Trump announced tariffs against major trading partners. They remain on track for a weekly gain.
Despite volatility, "gold is still a safe haven place for many investors ... I think the downside could be limited from here and I expect it to hold about $3,080 for now," Matt Simpson, a senior analyst at City Index said.
China's finance ministry said it will impose additional tariffs of 34% on all U.S. goods from April 10. This comes a day after Trump said he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on some of the country's biggest trading partners.
Nitesh Shah, head of commodities and macroeconomic research for Europe at Wisdom Tree, said gold could get closer to $3,600 by the first quarter of 2026.
U.S. non-farm payrolls data is due at 1230 GMT, while Fed Chair Jerome Powell is also due to speak later in the day.
"Market analysts are increasingly speculating that Powell might strike a more dovish tone, which could provide support to the markets," Zain Vawda, a market analyst at MarketPulse by OANDA, said.
Gold is known as a hedge against inflation, but higher rates could dampen its appeal as it yields no interest.
On the physical front, demand for gold ticked up in China, although customers in India refrained from purchases, anticipating a price drop.
Spot silver declined 1.5% to $31.40 an ounce and was headed for its worst week since December 2023.
Platinum lost 1.1% to $941.90 and palladium slipped 0.6% to $922.75.
Reporting by Rahul Paswan, Sarah Qureshi and Ashitha Shivaprasad in Bengaluru; Editing by Joe Bavier, Jan Harvey and David Evans
Source: Reuters