July 23 (Reuters) - Gold prices edged lower on Wednesday as a U.S.-Japan trade agreement announced by U.S. President Donald Trump lifted investor risk appetite, while a firmer dollar and higher Treasury yields added further pressure.
Spot gold was down 0.1% at $3,428.69 per ounce as of 1147 GMT, after hitting its highest point since June 16 earlier in the session.
U.S. gold futures also slipped 0.1% to $3,441.90.
Trump struck a trade deal with Japan that lowered tariffs on auto imports and spared Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans.
"Spot gold is paring some of its gains as the U.S.-Japan trade deal diluted demand for safe havens. The U.S. dollar's slight rebound is also weighing on bullion, though it's only natural that bullion bulls take a breather after the 3-day rally," said Han Tan, chief market analyst at Nemo.Money.
The U.S. dollar index (.DXY), opens new tab was up 0.1% against its rivals, making greenback-priced bullion more expensive for other currency holders, while benchmark 10-year U.S. Treasury yields rebounded from near-two-week lows.
U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the deadline for negotiating a trade deal, U.S. Treasury Secretary Scott Bessent said.
Meanwhile, the European Commission said it remained focused on achieving a negotiated outcome in trade talks with the U.S.
Gold, often considered a safe-haven asset, tends to do well during times of economic uncertainties and geopolitical tension.
Elsewhere, spot silver rose 0.3% to $39.39 per ounce, its highest level since late September, 2011.
"Silver’s supply-demand fundamentals are attractive and warrant a re-rating of prices higher and now that it is at a fresh 14-year high, it remains to be seen whether the conviction is sufficient to breach the psychologically important $40 level," independent analyst Ross Norman said.
Platinum fell 0.4% to $1,436.38 and palladium was down 0.3% at $1,270.93.
Reporting by Anmol Choubey and Anushree Mukherjee in Bengaluru; Additional reporting by Ishaan Arora; Editing by Louise Heavens and Rachna Uppal
