Investing.com - Gold prices firmed in European trading on Tuesday, extending gains into a third session as investors turned their attention to U.S. trade data ahead of President Donald Trump's meeting with Chinese President Xi Jinping.
Comex gold futures rose $5.80, or around 0.5%, to $1,259.80 a troy ounce by 2:55AM ET (06:55GMT), after hitting an overnight high of $1,260.15, its strongest level in a week. Meanwhile, spot gold was up $4.20 at $1,257.80.
Prices of the yellow metal ended gained $2.80 on Monday as investors parsed through mixed manufacturing data and weaker-than-expected auto sales numbers.
Also on the Comex, silver futures for May delivery tacked on 15.0 cents, or about 0.8%, to $18.36 a troy ounce. It reached its highest since March 2 at $18.37 earlier.
The U.S. trade deficit data is scheduled for release Tuesday at 8:30AM ET. Economists expect it to have narrowed in February to $44.8 billion from a five-year high of $48.5 billion a month earlier.
The main focus for markets this week centers on President Donald Trump's first meeting with Chinese counterpart Xi Jinping on Thursday and Friday.
The U.S. dollar index was at 100.44 in London morning trade, keeping distance from last week's four-and-a-half month low of 98.67.
Market experts do not expect the Federal Reserve to raise interest rates again until June. Futures traders are pricing in around a 50% chance of a hike at the Fed's June meeting, according to Investing.com's Fed Rate Monitor Tool. Odds of a September increase was seen at about 75%.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Elsewhere in metals trading, platinum tacked on 0.1% to $959.40, while palladium added 0.2% to $804.20 an ounce.
May copper futures ticked down 0.3 cents to $2.600 a pound.