Gold prices on Monday fell more than 1 per cent, as the dollar held firm and hopes for de-escalation in U.S.-China trade tensions dented appetite for safe-haven assets.Spot gold was down 0.9 per cent at $3,289.97 an ounce as of 0843 (GMT). U.S. gold futures eased 0.1 per cent to $3,301. The dollar index, which measures the U.S. currency against a basket of others, rose 0.3 per cent, making gold less attractive for other currency holders.Market sees trade tensions de-escalating and is less concerned about the Fed independence, reducing the demand for safe-haven assets for now,” said UBS analyst Giovanni Staunovo. “With the Fed still expected to cut interest rates later this year, we still look for gold to retest the $3,500/oz mark,” Staunovo said.U.S. President Donald Trump said talks on tariffs were taking place with China. Last week, the Trump administration signalled openness to de-escalate the trade war between the world’s two largest economies that has raised fears of recession.On Friday, China exempted some U.S. imports from its steep tariffs, but quickly knocked down Trump’s assertion that negotiations were underway.
