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ECB's policy decision due on Thursday

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Dollar hovers near over one-month low

(Adds comments and updates for Asia morning session)

By Brijesh Patel

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.

Spot gold was unchanged at $3,390.69 per ounce, as of

0258 GMT. Earlier in the session, bullion hit its highest level

since June 17.

U.S. gold futures held their ground at

$3,405.20.

"Gold's move on the upside has been pretty much supported by

positive technicals and as well as reinforced by a broad base of

dollar weakness," OANDA senior market analyst Kelvin Wong said.

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.

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.

U.S. President Donald Trump has threatened 30% duties on

imports from Europe if no agreement is signed before the August

1 deadline.

"There could be a possibility that U.S. and the

respective trading partners may not agree to the terms and

condition and that potentially could see a bit of uncertainty

and there could be some hedging activities by market

participants going forward," Wong said.

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.

Spot silver eased 0.2% to $38.84 per ounce, platinum

added 0.8% to $1,449.11 and palladium fell 0.2% to

$1,262.89.