Market News

(Bloomberg) -- Gold advanced, recovering from Monday’s modest drop, as investors digested mixed messages from the US regarding the progress of trade negotiations.

Bullion added as much as 0.7%, rising for the fourth time in five days. President Donald Trump indicated he’s open to more trades talks, including with the European Union, even though he insisted that his letters threatening new tariff rates are “the deals” for trading partners.

The metal has surged by more than a quarter this year, hitting a record above $3,500 an ounce in April, as traders sought a hedge against Washington’s aggressive and erratic trade policy. That rally has stalled over the last three months as investors await more clarity on the eventual contours of the new trade system, amid signs they’re hesitant to buy gold at such elevated levels.

“If trade talks deteriorate before August, we could easily see bullion retest or even breach its former highs,” said Fawad Razaqzada, a market analyst at City Index. “For now, the market seems firmly in wait-and-see mode, keeping the gold forecast leaning cautiously bullish.”

Gold gained 0.6% to $3,363.97 an ounce as of 11:08 a.m. in London. The Bloomberg Dollar Spot Index slipped 0.2%. Silver edged higher, after hitting an almost 14-year-high on Monday before closing lower. Platinum and palladium climbed.

--With assistance from Jack Ryan.