The Asian shares showed an increase on Monday on trade deal prospects, whereas it brought pressure to bear on gold.
Gold futures dropped by 0.42 percent to $1,290.45 per troy ounce from $1.293.36 in the previous session, having reduced by approximately 4 percent during the last week. The gold has lost its attractiveness for investors in the past couple of weeks, as the appetite for risky assets has come back due to the progress in trade negotiations.
The Wall Street Journal reported that the United States could postpone raising the majority (or even all) of tariffs on Chinese imports and one waits for Chinese President Xi Jinping and US President Donald Trump to sign a trade agreement in the nearest weeks. This data news has strengthened stock markets throughout the region, especially in China.
The risky appetite baffled not only the gold, also the U.S. dollar, which also is considered as a safe-haven asset.
The dollar index, which shows its strength versus a basket of six main rivals fell by 0.10 percent to 96.40 on the day before, but recovered 0.16 percent to 96.53 at 9.35 GMT.