Gold retreats from five-week high
While prices were lower amid profit-booking, they remained close to the five-week high due to uncertainty ahead of Trump's August 1 tariff deadline, said Jigar Trivedi, a senior commodity analyst at Reliance Securities. 'Gold is likely to stay bullish. A strong resistance is seen near $3,420. On the flip side, $3,350 is a support,' he said.
The US dollar index steadied against its rivals. A stronger dollar makes greenback-priced gold more expensive for other currency holders. European Union diplomats said the bloc was exploring broader counter-measures against the United States as prospects for a trade agreement with Washington diminished. Trump has threatened 30% tariffs on European imports if no deal is reached before the August 1 deadline. US Treasury Secretary Scott Bessent said the administration prioritised the quality of trade deals over timing.
Focus is also on the US Federal Reserve's monetary policy meeting scheduled for next week, where the central bank is expected to hold interest rates steady for now and potentially begin cuts in October. Gold tends to perform well in a low-interest-rate environment and during times of geopolitical and economic uncertainty.
Spot silver lost 0.2% to $38.86 per ounce, platinum added 0.2% to $1,440.47 and palladium declined 0.9% to $1,253.65. Russia's Nornickel, the leading global producer of palladium, lowered its palladium output forecast, now expecting between 2.677 and 2.729 million ounces compared with the earlier estimate of 2.704-2.756 million ounces.
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