Spot Gold traded in proximity to a fresh 5-week peak of $3,402.86 on Tuesday, as the US Dollar and Treasury yields dropped, while market players were looking for signs of progress in trade discussions.
The EU is exploring a set of possible countermeasures against the US, as prospects for an acceptable trade deal with Washington weaken.
US President Trump has warned of 30% duties on EU imports in case no deal is secured prior to the August 1st deadline.
“There could be a possibility that U.S. and the respective trading partners may not agree to the terms and conditions and that potentially could see a bit of uncertainty and there could be some hedging activities by market participants going forward,” OANDA senior market analyst Kelvin Wong was quoted as saying by Reuters.
The US Dollar Index hovered above an over one-week low and was last up 0.10% to 97.947. A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
And, 10-year US Treasury yield slipped to an over one-week low.
Spot Gold was last down 0.30% on the day to trade at $3,386.99 per troy ounce.
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