Gold held a three-day advance, as US President Donald Trump announced a highly-anticipated trade deal with Japan, signaling progress on fraught talks ahead of his Aug. 1 tariff deadline.

Bullion traded near $3,430 an ounce — up 2.5% so far this week — as Trump announced it would impose 15% and 19% tariffs on goods from Japan and the Philippines, a strategic geopolitical ally. With several countries racing to secure trade deals, investors are seeking clarity specifically on progress with China. Treasury Secretary Scott Bessent said he will meet his Chinese counterparts in Stockholm next week for their third round of talks aimed at extending a tariff truce and widening the discussions.

Traders were also monitoring an easing dollar and falling Treasury yields after Bessent offered support for Federal Reserve Chair Jerome Powell, who has found himself in the line of Trump's fire for holding interest rates steady while waiting to see if duties impact inflation. Lower yields and a weaker greenback tend to benefit the precious metal, as it doesn't pay interest and is priced in the currency.

Gold has climbed about a third this year, as uncertainty around Trump's aggressive attempts to reshape global trade and conflicts in Ukraine and the Middle East sparked flight to havens. The precious metal has consolidated within a tight range over the past few months, though this week's gains have pushed prices to trade about $70 short of April's record high above $3,500 an ounce.  

Meanwhile, with few major US economic data releases due in the coming days and Fed speakers in a blackout period ahead of next week's policy meeting, traders will be watching for a dovish signal from officials when they gather in Washington from July 29-30.

Spot gold was little changed at $3,430.75 an ounce at 8:39 a.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.1%, after a loss of 0.4% in the previous session. Silver was steady, while platinum and palladium fell.

Source: Bloomberg