Gold prices edged up on Wednesday (July 9) as investors monitored negotiations between the United States and its trading partners, while a stronger dollar limited further gains.

Spot gold was up 0.3% at $3,309.24 an ounce at 11:59 a.m. ET (1559 GMT) after hitting its lowest level since June 30 the previous 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 is working to reach a deal with the U.S. by the end of this month, while President Donald Trump promised to notify unnamed countries of further tariffs.

Last week, Trump signed into law a massive tax-cutting and spending package that nonpartisan analysts say could add $3.3 trillion to the national debt over the next decade.

Meanwhile, the U.S. dollar held near its highest level in more than two weeks, making bullion less attractive to overseas buyers.

Investors are also focusing on the minutes of the Federal Reserve's latest policy meeting, due to be released at 2:00 p.m. ET (1800 GMT) for clues on the central bank's interest rate trajectory.

The minutes of the Fed's June 17-18 meeting are expected to show the divided central bank hesitant to commit to a rate cut amid uncertainty over the impact of rising rates on inflation.

"We expect today's minutes to reaffirm the likelihood that the Fed will not cut rates at its July meeting and at the earliest at its September meeting," said David Meger, director of metals trading at High Ridge Futures. Gold tends to perform well during times of economic uncertainty, but struggles when interest rates are high, as it does not yield interest.

Spot silver fell 1% to $36.43 an ounce, platinum fell 1.1% to $1,344.17, and palladium fell 0.7% to $1,103.27.(alg)

Source: Reuters