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.