Investing.com - Gold prices rose on Friday amid news of unexpected tariffs on Mexican goods, while heightened Sino-U.S. trade tensions also attracted safe-haven demand.
At 9:12 AM ET (13:12 GMT), gold futures for June delivery on the Comex division of the New York Mercantile Exchange, gained $10.70, or 0.8%, to $1,297.80 a troy ounce.
U.S. President Donald Trump added further fuel to trade tensions with a surprise announcement of new tariffs on Mexico.
Trump said Washington will place a 5% tariff on all Mexican exports to the U.S. beginning on June 10 and that the levies could increase to 25% by Oct. 1 if the country does not work to stop the flow of immigrants across the border.
The unexpected move came as the recently-revised North American Free Trade Agreement was expected to be ratified by Congress, spooking investors in risk assets who feared a negative impact on the economy.
The flight to safety boosted gold to two-week highs, back towards the $1,300 psychological level not seen since May 15.
In other metals trading, silver futures advanced 0.1% at $14.512 a troy ounce by 9:14 AM ET (13:14 GMT).
Palladium futures fell 0.4% at $1,360.60 an ounce, while sister metal platinum dropped 0.2% at $792.20.
In base metals, copper fell 0.8% to $2.632 a pound.