By Anushree Mukherjee and Sarah Qureshi
(Reuters) – Gold prices edged up on Wednesday as investors closely watched negotiations between the United States and its trading partners, while a firmer dollar capped further gains.
Spot gold was up 0.3% at $3,309.24 per ounce, as of 11:59 am ET (1559 GMT) after hitting its lowest level since June 30 earlier in the day.
U.S. gold futures were steady at $3,318.10.
Amid market volatility, fiscal concerns, and a widening U.S. deficit, investors are increasingly turning to gold, said Phillip Streible, chief market strategist at Blue Line Futures.
On the trade front, the European Union said it was working on reaching a deal with the U.S. by the end of the month, while President Donald Trump promised that he would deliver further tariff notices on unnamed countries.
Last week, Trump signed into law a massive package of tax and spending cuts that nonpartisan analysts say could add $3.3 trillion to the nation’s debt over the next decade.
Meanwhile, the U.S. dollar hovered near a more than two-week high, making bullion less attractive for overseas buyers. [USD/]
Investors are also focused on the minutes of the Federal Reserve’s latest policy meeting, due at 2:00 pm ET (1800 GMT) for hints on central bank’s interest rate trajectory.
Minutes from the Fed’s June 17-18 meeting are expected to show a divided central bank hesitant to commit to rate cuts amid uncertainty over the inflation impact tariff hikes.
“We would expect out of those minutes today to reiterate the likelihood that the Fed will not be lowering rates at its July meeting and the earliest would be at its September meeting,” said David Meger, director of metals trading at High Ridge Futures.
Gold tends to perform well during economic uncertainty but struggles when interest rates are high, as it doesn’t earn interest.
Spot silver eased 1% to $36.43 per ounce, platinum shed 1.1% to $1,344.17 and palladium lost 0.7% to $1,103.27.
(Reporting by Anushree Mukherjee and Sarah Qureshi in Bengaluru, Editing by Louise Heavens and Varun H K)
