(Updates for U.S. hours open)

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EU explores broader counter-measures as US tariff deal

prospects

dim

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Fed's Bowman says monetary policy without political

interference

is "very important"

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Bullion hits highest since June 16

July 22 (Reuters) - Gold climbed to a five-week high on

Tuesday, drawing strength from trade uncertainty and weaker U.S.

bond yields as investors continue to eye U.S. President Donald

Trump's August 1 tariff deadline.

Spot gold rose 0.6% to $3,415.61 per ounce by 1414

GMT, hitting its highest since June 16.

U.S. gold futures were up 0.6% at $3,428.10.

The yield on benchmark U.S. 10-year notes fell

to a near two-week low, making non-yielding bullion more

attractive.

"Trade uncertainty is prompting some safe haven demand. The

U.S. has got several trade deals in the works and there's rumors

that the EU and the U.S. might not be able to come to an

agreement or certainly are not anywhere close yet," said Jim

Wyckoff, a senior analyst at Kitco Metals.

Treasury Secretary Scott Bessent on Tuesday said he would

meet his Chinese counterpart next week, suggesting a possible

extension of an August 12 tariff deadline. He added that the

U.S. is poised to announce "a rash of trade deals" with other

countries.

Meanwhile, European Union diplomats hinted that the EU is

looking at broader counter-measures against the U.S. as

prospects for a trade agreement dwindle.

Investors are also positioning ahead of next week's Federal

Reserve meeting. While the Fed is expected to hold rates steady,

markets are eyeing a potential rate cut in October.

Gold, traditionally considered a hedge during times of

uncertainty, also tends to do well in a low-interest rate

environment.

Bessent on Tuesday also said there was no need for Fed Chair

Jerome Powell to step down immediately, a day after calling for

a review of the central bank as an institution.

Meanwhile, Fed Vice Chair Michelle Bowman underscored the

importance of the central bank's independence amid rising

pressure from Trump to lower borrowing costs.

Spot silver lost 0.1% to $38.89 per ounce, platinum

added 0.2% to $1,440.75 and palladium declined

0.1% to $1,262.75.