In times like these, with trade tensions threatening all-out war, investors run to gold.
Prices for the shiny yellow metal gained as much as 1% on Friday on a faltering American dollar and equities as investors scurried to safety after U.S. President Donald Trump moved towards long-promised anti-China tariffs, prompting a strict response from China amid fears of a global trade war.
Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, but only after a 30-day consultation period that starts once a list is published.
China urged the United States to "pull back from the brink", while the Chinese commerce ministry unveiled plans to levy additional duties on up to $3 billion of U.S. imports in response to the steel and aluminium tariffs.
Spot gold was up 0.8% at $1,339.33 U.S. per ounce early Friday morning. Earlier in the session, prices touched their highest since Feb 20 at $1,343.06 U.S., and were on track for their best weekly performance since the week of Feb. 16, rising over 2%.
U.S. gold futures for April delivery rose 0.9% to $1,339.50 U.S. per ounce.
Stock markets slid on Friday and perceived safe havens such as government bonds and the yen gained.
Meanwhile, European Union leaders were awaiting for the final word from Trump on whether the United States would apply tariffs to European steel and aluminium, said German Chancellor Angela Merkel, and warned of a firm response if he did.
Among other precious metals, silver climbed 1% to $16.52 U.S. per ounce, while platinum was 0.9% higher at $955.30 U.S. per ounce. Both the metals were on track to record their best weekly performance in five weeks.
Palladium rose 0.2% to $981.97 U.S. per ounce.
