Gold Tests $3,400 Resistance, EU-US Tariff Talks Fail?

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The yellow metal managed to gain traction amid renewed trade tensions on Monday as the prospect of a deal between the European Union and the United States faded.


At 9.20am, gold was at $3,392.97, down 0.15% since it opened early Tuesday in Asian trading.


The progress of negotiations for both sides of the world's economic giants has failed to make any progress in recent weeks. President Donald Trump has threatened to impose tariffs of up to 30% on most goods imported from the EU in an effort to reduce the current trade deficit.


US Commerce Secretary Howard Lutnick expressed confidence in a potential deal, saying that the world's two largest trading partners will complete the deal.


However, the August 1 deadline is approaching, which will make it difficult to negotiate new tariff rates.


According to CNBC, the Council of Europe reported that the total value of trade between the EU and the US would be $1.96 trillion by 2024.


The US has signaled that the European bloc will be exposed to basic tariffs of 15% to 20%, the union needs to prepare for the worst-case scenario and prepare for a response if a deal fails.

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