On Tuesday, gold prices reached their peak in over a month, buoyed by a depreciating U.S. dollar and declining Treasury yields. This movement reflects investor sentiment as they anticipate developments in trade negotiations prior to the August 1 deadline.

Spot gold maintained a stable price of $3,390.73 per ounce, following a peak not seen since June 17 earlier in the trading session. U.S. gold futures maintained stability at $3,404.20. The U.S. dollar index was positioned close to a low not seen in over a week against its counterparts, resulting in a decrease in the cost of gold priced in dollars for holders of other currencies. Concurrently, benchmark 10-year U.S. Treasury yields also reached a low not observed in more than a week on Monday. The European Union is considering a wider array of potential countermeasures in response to the United States, as the likelihood of reaching a satisfactory trade agreement with Washington diminishes, as reported by EU diplomats. Trade negotiations remain unproductive as the deadline for U.S. President Donald Trump’s August 1 tariff approaches.

Additionally, the European Central Bank is anticipated to maintain interest rates at 2.0% after a series of reductions concluded at its policy meeting on July 24. The monetary policy of the U.S. Federal Reserve is set to be announced next week. Market participants are estimating a probability of approximately 59% for a rate reduction by the Federal Reserve in September, as indicated by the CME FedWatch Tool. Gold typically exhibits strong performance when interest rates are low.

Meanwhile, the world’s largest gold-backed exchange-traded fund reported an increase in its holdings by 0.36%, rising to 947.06 tons on Monday from 943.62 tons on Friday. In the previous month, China imported 63 metric tons of gold, marking the lowest volume since January, according to data released by the General Administration of Customs on Sunday.

Spot silver increased by 0.1% to $38.93 per ounce, while platinum rose by 0.4% to $1,444.05, and palladium experienced a slight decline of 0.2% to $1,262.35.