Khaberni -Gold prices rose on Tuesday to their highest level in more than a month, supported by the declining dollar and U.S. Treasury yields as investors wait for any progress in trade talks ahead of the deadline on August 1st.
As of 0503 GMT, gold remained unchanged in spot transactions to settle at 3389.98 dollars per ounce. The precious metal recorded its highest level since June 17 earlier in the session.
U.S. gold futures settled at 3402.90 dollars.
"Gold moved in an upward direction largely supported by positive technical factors as well as the declining dollar," said Kelvin Wong, senior market analyst at OANDA.
The dollar index hovered near its lowest level in more than a week against competing currencies, making gold priced in U.S. dollars less expensive for holders of other currencies.
10-year U.S. Treasury yields recorded their lowest level in more than a week yesterday, Monday.
According to European Union diplomats, the bloc is exploring a wide range of potential countermeasures against the United States as prospects of reaching an acceptable trade deal with Washington fade.
U.S. President Donald Trump has threatened to impose a 30 percent tariff on imports from Europe if a deal is not reached before the deadline on August 1st.
Wong stated, "There could be a chance that the United States and the concerned trade partners do not agree on the terms and conditions, which might see some uncertainty and there might be some hedging activities by market participants in the future."
On the other hand, the European Central Bank is expected to keep interest rates steady at two percent after a series of monetary easing measures at the conclusion of its monetary policy meeting on July 24th.
The U.S. Federal Reserve is scheduled to hold its meeting next week.
According to CME's FedWatch Tool, traders expect a roughly 59 percent chance of a U.S. interest rate cut in September.
Gold tends to thrive in a low interest rate environment.
For other precious metals, silver dropped 0.5 percent to 38.71 dollars per ounce in spot transactions, platinum rose 0.3 percent to 1442.55 dollars, and palladium decreased 1.3 percent to 1250.19 dollars.
