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(Bloomberg) -- Gold extended its weekly gain toward 5% after Donald Trump threatened to impose sweeping tariffs on the European Union and Apple Inc., fueling demand for haven assets.

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Spot bullion rose by as much as 2.1% after the US President threatened a 50% tariff on goods from the European Union starting on June 1, saying “our discussions with them are going nowhere.” US equity futures fell. Trump also threatened Apple with a tariff of at least 25% if it does not manufacture its iPhones in the US.

Bullion has surged by more than a quarter this year and is about $150 below the all-time-high reached last month. Its ascent has been underpinned by the fallout from the US-led tariff war, which sent investors fleeing from equities exposed to the disruptions in trade.

Concerns about the fiscal position of the US government have also supported demand for haven assets. After the decision by Moody’s Ratings to strip the US of its top credit rating, investors are now concerned that President Donald Trump’s signature tax bill — which passed the House and now goes to the Senate — will boost the already swelling deficit.

Yields on 10-year US Treasuries pushed higher this week, hovering around 4.5%. In earlier years, such a move would have been a major headwind for gold as it doesn’t pay interest, with bullion prices and yields typically moving inversely. That correlation has now weakened, as investors forgo higher interest payments for safe havens.

Meanwhile platinum rose to the highest in two years and is on track for a weekly gain of more than 10%, the biggest such advance in more than four years.

Gold traded 1.9% higher to $3,357.78 an ounce as of 11:33 a.m. in New York. The Bloomberg Dollar Spot Index slipped 0.6%, on course for a weekly drop. Silver advanced while palladium slipped.

--With assistance from John Deane, Jason Scott, Yihui Xie and Yvonne Yue Li.

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