US-China trade war in focus

A worker holds a gold medal on January 13, 2015 at Istanbul Gold Refinery in Istanbul, Turkey.

Ozan Kose | AFP | Getty Images

Gold prices plunged into early trade on Monday as worries about an escalation in the US and Chinese trade wars eased, raising the dollar.

The spot gold fell 0.2% to $ 1,494.30 per ounce, per 0104 GMT. In the previous session, prices fell to the lowest since September 18, to $ 1,486.60.

U.S. Gold futures were down 0.2% to $ 1[ads1],503.3 an ounce.

China hopes Beijing and Washington will resolve their trade dispute "with a calm and rational attitude," Deputy Commerce Minister Wang Shouwen said Sunday, ahead of the two-week talks between two sides.

President Donald Trump's administration is considering releasing Chinese companies from US exchanges, three sources briefed on Friday, in what would be a radical escalation of US-China trade tensions.

The United States does not yet plan to stop Chinese companies from listing on US exchanges, Bloomberg reported on Saturday, citing a US prime minister.

US consumer spending barely increased in August, and business investment remained subdued amid lingering trade tensions, prompting economists to cut their economic growth estimates for the third quarter.

Philadelphia Federal Reserve Bank President Patrick Harker said in New York Friday that he countered the central bank's September interest rate cut and believes the Fed should "stick" to interest rates.

Boris Johnson on Sunday said he would not quit as Britain's prime minister, although he failed to secure a deal to leave the EU, insisting only his Conservative government could deliver Brexit on October 31.

Saudi Arabia's Crown Prince warned in an interview sent on Sunday that oil prices could spike to "unimaginably high numbers" if the world does not come together to deter Iran, but said he would prefer a political solution to a military fund.

SPDR Gold Trust, the world's largest listed fund with a gold-backed fund, said its stake fell 0.22% to 922.88 tonnes on Friday.

Hedge funds and money managers raised their bullish positions in COMEX gold and reduced bullish bets on silver contracts in the week to September 24, the US Commodity Futures Trading Commission (CFTC) said on Friday.

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