Gold slipped 2.1% to a two-week low as improving prospects for trade talks reduced demand for safe-haven assets.
The decline followed reports that the U.S. Trade Representative is nearing finalizing agreements and that officials in Washington and Beijing have been communicating, easing some market fears and lifting risk appetite.
Despite the recent pullback, gold is still up about 23% year-to-date. The metal hit an all-time high above $3,500 last week, driven by worries over the global economy, speculative activity in China, and continued purchases by central banks.