July 23 (Reuters) - Gold prices climbed to a more than
five-week peak on Wednesday, supported by a softer U.S. dollar
and lower Treasury yields as investors looked forward to signs
of progress in U.S. trade discussions.
FUNDAMENTALS
* Spot gold was steady at $3,430.19 per ounce, as of
0051 GMT, after hitting its highest since June 16 earlier in the
session. U.S. gold futures were flat at $3,443.30.
* The U.S. dollar index languished near a two-week
low against its rivals, making greenback-priced gold less
expensive for other currency holders.
* Benchmark 10-year U.S. Treasury yields on
Tuesday touched their lowest level since July 9.
* U.S. President Donald Trump said the U.S. and Japan had
struck a trade deal that includes a 15% tariff that will be
levied on U.S. imports from the country.
* U.S. and Chinese officials will meet in Stockholm next
week to discuss an extension to the deadline for negotiating a
trade deal, U.S. Treasury Secretary Scott Bessent said.
* With an August 1 deadline looming before the imposition of
sweeping import duties on trade partners, Bessent said on Monday
the administration is more concerned with the quality of trade
agreements than the timing.
* Meanwhile, Trump continued his attack on U.S. Federal
Reserve Chair Jerome Powell, calling him a "numbskull" who has
kept interest rates too high, but he will be out in eight
months.
* Trump has been hammering at Powell for months for not
cutting rates and frequently raised the possibility of ousting
him.
* The U.S. central bank is widely expected to leave interest
rates unchanged at their monetary policy meeting scheduled for
next week. Gold tends to perform well in a low-interest-rate
environment.
* SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.82% to 954.80
tonnes on Tuesday from 947.06 tonnes on Monday.
* Spot silver eased 0.1% to $39.23 per ounce,
platinum fell 0.3% to $1,437.83 and palladium
slipped 0.7% to $1,266.49.
DATA/EVENTS (GMT)
1400 EU Consumer Confid. Flash July
1400 US Existing Home Sales June
(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry
Jacob-Phillips)
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