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 XAU= 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 GCcv1 held their ground at $3,404.20.
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 GLD, 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. GOL/ETF
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 XAG= edged 0.1% higher to $38.93 per ounce, platinum XPT= added 0.4% to $1,444.05 and palladium XPD= eased 0.2% to $1,262.35.
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