Investing.com – Gold prices were lower during morning trade in Asia on Monday, despite a slightly softer U.S. dollar.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange were down $2.20, or 0.18%, to $1,297.10 a troy ounce by 11:05PM ET (03:05 GMT).
The U.S. dollar index that tracks the greenback against a basket of six major currencies shed 0.17% to 94.00.
Dollar-denominated assets such as gold are sensitive to moves in the dollar. While a gain in the dollar usually makes gold more expensive for holders of foreign currency, and thus decreases demand for the precious metal, this is not the case on Monday morning.
Though the upbeat nonfarm payroll data last week supported the dollar, the uncertain trade prospects between the U.S. and China set the dollar back.
Last Friday, the U.S. reported an increase in nonfarm payroll employment of 223k in May versus 159k the same period last year, which fuelled the dollar.
Trade talks between the U.S. and China ended on Sunday without reaching any agreements, casting uncertainty over the trade relations between the two countries. This should stir up demand for safe-haven assets such as gold.
However, expectations of an interest rate hike by the Federal Revserve this month offset support for gold from worries about a trade war.
In other precious metal trade, silver futures shed 0.13% to $16.420 a troy ounce, while platinum futures gained 0.11% to $904.70 an ounce and copper added 0.49% to $3.106.