Gold continued to edge lower as demand for safe-haven assets eased, with investors weighing the prospect of improved trade relations between the US and EU.

Bullion was trading near $3,347 an ounce, after falling 0.4% on Monday, after Brussels said it would speed up negotiations with Washington to avoid a trans-Atlantic trade war. Both sides have softened their approach after US President Donald Trump initially criticized the bloc for stalling talks.

Demand for safe-haven assets such as bullion has been hit by signs that the White House may be making progress in negotiations with some trading partners. Gold-backed exchange-traded funds have posted outflows for five straight weeks since peaking at their highest level in more than a year in mid-April, according to Bloomberg calculations.

However, the market remains in wait-and-see mode, weighing on a number of risks including the ballooning US deficit, ongoing trade talks and worsening conflicts in the Middle East and Ukraine.

Gold has gained more than a quarter this year, though prices are currently trading about $165 below an all-time high set last month. Citigroup Inc. turned to a short-term call for $3,500 an ounce on Monday, reinforcing its status as a safe-haven asset amid fresh trade and geopolitical risks.

Investors are also gearing up for the Federal Reserve's preferred inflation measure, the U.S. personal consumption expenditures price index excluding food and energy, due on Friday.

Spot gold rose 0.1% to $3,344.65 an ounce as of 7:56 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Platinum extended losses after hitting a two-year high last week on signs of market tightness. Silver was slightly lower and palladium was little changed.

Source: Bloomberg