Gold retreated on Monday as easing U.S.-China trade tensions boosted investors' risk appetite and dented the demand for the safe-haven metal, while a stronger dollar also piled on the pressure.
Spot gold fell 0.8% to $3,292.11 an ounce as of 0625 GMT. Bullion hit a record high of $3,500.05 on April 22.
U.S. gold futures rose 0.1% to $3,302.30.
The dollar rose 0.1% against a basket of currencies, making bullion more expensive for overseas buyers.
"It's probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the frantic first week in April," KCM Trade Chief Market Analyst Tim Waterer said.
"Comments last week from the White House have fuelled optimism that a U.S.-China trade deal may eventuate, which has caused safe-haven demand for assets such as gold to subside."
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.
However, on Sunday, U.S. Treasury Secretary Scott Bessent did not back Trump's assertion.
Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment.
Meanwhile, many participants at the International Monetary Fund and World Bank Spring Meetings said the Trump administration was still conflicted in its demands from trading partners hit with sweeping tariffs.
Key data releases this week include the U.S. job openings report on Tuesday, Personal Consumption Expenditures on Wednesday and the non-farm payrolls report on Friday. These may provide more insight into the Federal Reserve's policy outlook.
Spot silver dropped 0.9% to $32.80 an ounce, platinum was steady at $971.29 and palladium lost 0.7% to $942.15. - Reuters
