Gold Moves Higher As Trade Deal Optimism Fades

(RTTNews) - Gold prices edged higher on Tuesday as trade deal optimism waned with investors preferring to wait for finalization of agreements though trade talks are ongoing vigorously between the US and its major trading partners.

Comex Gold for July delivery moved up by gained $14.30 (or 0.43%) to $3,323.40 per troy ounce.

The tariffs announced by the US President Donald Trump are set to take effect by this weekend as the deadline for the "reciprocal tariffs" suspension period ends this Friday. The White House has secured a few deals significantly over the past months.

EU, Japan; Philippines, Indonesia, and UK have struck a best-possible deal with the US so far.

High-level officials of China and the US are on intense discussions in Sweden for a broader conclusive trade agreement. Canada, India, Mexico, and South Korea are parleying hectically.

Trump had urged Russia to speed up a ceasefire deal with Ukraine in 10-12 days to avoid sanctions. However, Russian strikes on Ukraine continued even yesterday. Oil prices could swing up or down based on Russia's decision in the forthcoming weeks.

According to the US Labor Department data, the number of job openings in the US fell by 275,000 to 7.437 million in June and job quits fell by 128,000 to 3.142 million.

Following the earlier attacks on two bulk carriers and the recent announcement of the Yemen's Houthi rebel group about their plans to attack merchant ships that pass through the Red Sea has brought trade via world's most important shipping lane to a standstill. This threat has compelled operators to detour via tip of Africa adding to transportation costs and time delays.

A sense of direction on oil prices could show up only after a clear picture surfaces on tariffs and the development in the Red Sea.