Gold prices gained ground in Friday’s Asian trading session, recovering from earlier declines this week and positioning the metal for a notable weekly advance. Investor concerns about the growing U.S. fiscal deficit and upcoming trade policy decisions out of Washington have driven demand for gold’s safe-haven appeal.

Spot gold rose by 0.5% to $3,341.34 per ounce, with August futures inching up 0.2% to $3,349.52 as of 00:10 ET (04:10 GMT). Although gold dipped nearly 1% on Thursday after stronger-than-expected U.S. employment data, the metal still stands roughly 1.8% higher on the week, breaking a two-week streak of losses.

Trade Tensions Escalate as U.S. Prepares Tariff Notifications

President Donald Trump announced on Thursday that the U.S. would start informing trade partners about new export tariffs starting Friday. Instead of negotiating separately with over 170 countries, the U.S. plans to impose uniform tariffs ranging from 20% to 30%.

So far, trade deals have only been confirmed with the UK and Vietnam, plus a partial agreement with China. The uncertainty and rising friction in global trade have further supported gold’s role as a protective asset amid geopolitical and economic unease.

Fiscal Concerns Bolster Gold, While Strong Jobs Data Caps Gains

Gold’s appeal this week also stems from fiscal anxieties in the U.S., where lawmakers have advanced a large tax cut bill featuring increased border security funding and cuts to social programs. The legislation, expected to be signed by Trump before the July 4 deadline, is forecasted by the Congressional Budget Office to add $3.4 trillion to the national debt, which now exceeds $36 trillion.

However, gold faced downward pressure on Thursday after robust job creation numbers showed the U.S. economy outperformed expectations in June. The upbeat employment report lessened bets on an imminent Federal Reserve rate cut.

With rate cut expectations receding, gold’s upside potential was limited since higher interest rates tend to reduce demand for the non-yielding metal, making income-generating assets comparatively more attractive.

Dollar Strength Creates Mixed Metal Market Trends

The U.S. Dollar Index slipped 0.1% in Friday’s Asian session but kept most of its gains from the previous day, buoyed by the strong employment figures.

In other metals, platinum edged up 0.5% to $1,385.80 per ounce, silver dropped 0.3% to $37.00, copper futures on the London Metal Exchange fell 0.3% to $9,923.65 per ton, and U.S. copper contracts declined 0.4% to $5.115 per pound.