The precious yellow metal market extended its decline below $3,270 since closing last week, approaching a one-month low after the US-China trade deal increased risk appetite.
At 9.15 am, gold prices were at $3,269.81, down 0.14% since it opened early Monday in Asian trading.
The trade deal between the world's two economic giants last week, especially in the rare earth industry, was seen positively by the market, while the Iran-Israel ceasefire talks also reduced the appeal of gold.
The geopolitical slowdown has offered investors an opportunity to start taking profits as the outlook is looking forward amid the conflict.
Conversely, any renewed geopolitical tensions or trade uncertainty sparked by US President Donald Trump could prompt central bank purchases and boost demand for the precious metal.
In addition, market confidence also increased as the potential for a Federal Reserve (Fed) interest rate cut loomed and participants raised bets that the US central bank would cut rates more this year.
