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PRECIOUS-Gold prices rise to over one-month high on softer dollar, bond yields
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PRECIOUS-Gold prices rise to over one-month high on softer dollar, bond yields
Jul 21, 2025 7:03 PM

July 22 (Reuters) - Gold prices climbed on Tuesday to

their highest point in more than a month, supported by a weaker

U.S. dollar and lower Treasury yields, as investors looked for

progress in trade talks ahead of an August 1 deadline.

FUNDAMENTALS

* Spot gold was steady at $3,390.73 per ounce, as of

0112 GMT, after hitting its highest since June 17 earlier in the

session. U.S. gold futures held their ground at

$3,404.20.

* The U.S. dollar index was hovering near a more than

one-week low against its rivals, making greenback-priced gold

less expensive for other currency holders, while benchmark

10-year U.S. Treasury yields hit a more than

one-week low on Monday.

* The European Union is exploring a broader set of possible

counter measures against the United States as prospects for an

acceptable trade agreement with Washington fade, according to EU

diplomats.

* Trade negotiations have yet to yield any meaningful deals

as the clock ticks down on U.S. President Donald Trump's August

1 tariff deadline.

* Also on radar, the European Central Bank is expected to

hold interest rates steady at 2.0% following a string of cuts at

the end of its policy meeting on July 24. The U.S. Federal

Reserve monetary policy is scheduled for next week.

* Traders are pricing about a 59% chance of a rate cut by

the Fed in September, according to the CME FedWatch Tool. Gold

tends to perform well in a low-interest-rate environment.

* Meanwhile, SPDR Gold Trust, the world's largest

gold-backed exchange-traded fund, said its holdings rose 0.36%

to 947.06 tons on Monday from 943.62 tons on Friday.

* China brought in 63 metric tons of gold last month, the

lowest amount since January, data from the General

Administration of Customs showed on Sunday.

* Spot silver edged 0.1% higher to $38.93 per ounce,

platinum added 0.4% to $1,444.05 and palladium

eased 0.2% to $1,262.35.

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