Gold is steady ahead of US-EU trade talks

This come after the US imposed tariffs on EU steel and aluminium in June and Trump threatened to extend them to EU cars and car parts.

Meanwhile, investors are also awaiting the second-quarter US economic growth data which is due on Friday, where they expect growth to top current forecasts of 4.1%.

“We still remain somewhat cautious on the precious metals group. In addition to poor-looking technicals, the market is vulnerable to the dollar resuming its upswing. This could happen as easily as Friday when the GDP numbers come out,” INTL FCStone analyst Edward Meir said in a note.

“Anything meaningfully north of 4.2% could lead to yet another push-up in the greenback and pressure gold lower as investors coalesce around perceptions of a Fed intent on raising rates as expeditiously as it can.”

A now-robust US economy will soon lose momentum on rising interest rates and escalating trade disputes, according to economists polled by Reuters, who nonetheless gave just a one-in-three chance of a recession over the next two years.

Among other precious metals, silver was down 0.1% at $15.42/oz.

Platinum was 0.3% higher at $830.99/oz, while palladium fell 0.5% to $910/oz.

Reuters