Investing.com - Gold prices surged on Friday to settle at their best level in five weeks, as investors sought shelter in safe-haven assets amid the threat of a global trade war.
Gold futures finished at $1,349.90 a troy ounce on the Comex division of the New York Mercantile Exchange, marking a gain of $22.50, or 1.7%. It was the highest close since Feb. 20.
For the week, prices of the precious metal gained roughly 2.9%, the best weekly performance in over a month.
Market jitters intensified after President Donald Trump signed a memorandum that would implement tariffs on up to $60 billion in imports from China on Thursday.
The tariffs largely focus on technology sector goods and were intended to penalize China for, according to the Trump administration, stealing intellectual property.
In response, China on Friday proposed a list of 128 U.S. products as potential retaliation targets, according to a government statement.
Worries of heightened geopolitical tensions stoked further demand for the precious metal.
President Trump on Thursday named former ambassador John Bolton as his new national security adviser, succeeding Lt. Gen. H.R. McMaster. Bolton has previously advocated using military force against North Korea and Iran.
Gold is traditionally seen as a safe place to park assets in times of economic and geopolitical uncertainty.
The yellow metal also enjoyed a boost after the Federal Reserve gave guidance on the pace of interest rate rises that was less aggressive than some investors had expected.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
In the week ahead, rhetoric rather than economics could be the main driver of sentiment, as investors watch further developments amid a brewing trade war between the U.S. and China.
On the data front, the final reading of fourth-quarter U.S. growth will be the highlight of the holiday-shortened week. Markets stateside will remain closed on Friday for Good Friday.
Staying in the U.S., a number of Federal Reserve policymakers are due to make public appearances that may offer insight into the likelihood of higher interest rates in the months ahead.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday
New York Fed boss William Dudley, Cleveland Fed President Loretta Mester and Fed Governor Randal Quarles are all scheduled to deliver remarks.
Tuesday
The U.S. Conference Board is to release data on consumer confidence.
Later on, Atlanta Fed boss Raphael Bostic is set to deliver comments at the Hope Global Forums Annual Meeting, in Atlanta.
Wednesday
The U.S. is to produce final data on fourth-quarter economic growth, followed by a report on pending home sales.
Thursday
Germany is to release preliminary inflation data.
The UK is to publish a final reading on British growth data for the fourth quarter.
In the U.S., weekly data on initial jobless claims and reports on personal income and spending, which includes the personal consumption expenditures inflation data, the Fed's preferred metric for inflation, are on the agenda.
Friday
Global financial markets will stay closed for Good Friday.