PRECIOUS-Gold gains on safe-haven demand as Trump expands trade war

By Brijesh Patel

July 11 (Reuters) - Gold prices rose for a third straight session on Friday, as U.S. President Donald Trump's announcement of new tariffs on Canada and broader tariff threats against other trading partners lifted demand for the safe-haven asset.

Spot gold XAU= was up 0.6% at $3,344.02 per ounce as of 1108 GMT. U.S. gold futures GCcv1 gained 0.9% to $3,355.

"We're seeing some growing demand for gold as a haven. There are investors looking for some safety assets despite stock markets hitting highs. And any dip in gold is seen as a buying opportunity now," said Carlo Alberto De Casa, an external analyst at Swissquote.

On Thursday, Trump said the United States would impose a 35% tariff on imports from Canada and planned to impose blanket duties of 15% or 20% on most other trade partners.

This followed Wednesday's announcement of a 50% tariff on U.S. copper imports and a similar levy on goods from Brazil.

"Rising trade tensions have reinvigorated demand for haven assets such as gold amid the prospect of an economic slowdown. The more dovish Fed is also boosting investor appetite," analysts at ANZ wrote in a note.

Federal Reserve Governor Christopher Waller reiterated his belief the central bank could cut rates at its policy meeting later this month.

Meanwhile, Fed Bank of San Francisco President Mary Daly said two rate cuts remain on the table for this year.

Lower rates boost non-yielding gold's appeal.

Elsewhere, spot silver XAG= rose 1.1% to $37.43, platinum XPT= rose 0.2% to $1,363.31 and palladium XPD= climbed 2.5% to $1,170.24.

The premium of the U.S. futures for silver, platinum and palladium against the London benchmarks rose after Trump's copper tariff announcement this week, leading to a spike in lease rates.

"Traders unwound open positions on NYMEX/COMEX and had to borrow the other side," said a precious metals trader, adding that this activity in the so-called white metals left gold unaffected.

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