Gold fell on Monday as positive US-China trade talks eased market concerns, prompting investors to shift from safe-haven assets to riskier investments.

Spot gold fell 1.4% to $3,277.34 an ounce, as of 0432 GMT. US gold futures fell 1.9% to $3,281.70.

"The dollar index has strengthened as the Trump administration touted progress in trade negotiations, with China joining talks over the weekend in Switzerland weighing on gold prices," said Jigar Trivedi, senior commodities analyst at Reliance Securities.

The US and China ended high-stakes trade talks on a positive note on Sunday, with US officials touting a "deal" to reduce the US trade deficit, while Chinese officials said they had reached an "important consensus". Chinese Vice Premier He Lifeng said a joint statement would be released in Geneva on Monday.

The U.S. and China imposed tariffs on each other last month, sparking a trade war that has stoked fears of a global recession.

The U.S. will face higher tariffs after President Donald Trump's trade talks end, most current and former Trump advisers interviewed by Reuters said.

Gold, traditionally seen as a hedge against economic and political uncertainty, thrives in a low-interest-rate environment.

On Friday, Cleveland Fed President Beth Hammack said the Fed needs more time to see how the economy responds to Trump's tariffs and other policies before determining the appropriate response.

Traders are also eyeing the release of the U.S. Consumer Price Index on Tuesday for fresh signals on the Fed's monetary policy trajectory. "In the short term, gold may continue to decline as the dollar could strengthen and amid easing geopolitical risks, demand for safe-haven assets could also decline, leading to the yellow metal falling to $3,200/oz in the short term," Trivedi added.

Spot silver rose 0.4% to $32.84 an ounce, platinum rose 0.7% to $1,001.90, and palladium gained 0.6% to $981.20. (Newsmaker23)

Source: Reuters