Gold prices headed higher on Friday as investors fled to safe-haven assets after U.S. President Donald Trump re-ignited trade war fears by proposing $100 billion in new tariffs on China.
Spot gold rose 0.3% to $1,330.18 U.S. per ounce shortly before dawn in North America, and the U.S. gold futures rose 0.4% to $1,333.50 an ounce.
The yellow metal was up 0.5% so far this week.
Gold on Thursday dropped to a one-week low of $1,322.40 U.S. an ounce after the United States and China signaled a willingness to negotiate their trade dispute.
However, Trump late on Thursday said he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China, fueling an already heated trade dispute between the world's two biggest economies.
The holdings of North American gold-backed exchange traded funds rose by 21.5 tonnes, worth $916.9 million, in March, a 1.7% increase from the month prior, the World Gold Council said on Thursday.
In other precious metals, spot silver was up 0.2% at $16.38 U.S. an ounce.
Platinum gained 0.1% to $911 U.S. an ounce, while palladium was steady at $905.40 an ounce.
