Gold prices edged lower for a second session on Monday as trade tensions between China and the United States helped to boost the dollar and weaken the yuan.
US President Donald Trump said on Friday that he was ready to impose tariffs on virtually all Chinese imports, representing a further $267 billion of goods in addition to the $200 billion already facing potential duties, prompting a threat by China to retaliate.
The rhetoric has pushed investors to the greenback in the belief that the United States has less to lose from a trade war - making dollar-priced gold more expensive for non-US buyers - while puncturing the yuan, currency of the world’s biggest gold consumer.
Spot gold was down 0.1 percent at $1,193.93 at 1122 GMT, slipping towards the 19-month low of $1,159.96 touched last month. U.S. gold futures were 0.1 percent down at $1,199.
Gold has tumbled more than 12 percent from a high of $1,365.23 in April, mirroring a 10 percent fall in the value of the yuan against the dollar.
In other precious metals, spot silver was up 0.6 percent at $14.19, platinum rose 0.9 percent to $785.70 and palladium was up 0.3 percent at $983.20.
Source : Reuters