The ongoing trade war between the U.S and China has impacted the gold prices. The dollar is gaining strength because of no results in sight to resolve the trade was and this has led to a decrease in the spot gold by 0.2% to $1,198.43 an ounce at 0708 GMT.
Last week, on Thursday, President of the United States of America, Donald Trump, announced that he will levy tariffs on additional $200 billion worth of imports from China.
The chief analyst of Shandong Gold Group has said that if the tariffs are imposed, then the gold prices may go down significantly further.
The gold prices have tumbled down 8% because of many factors like the US-China trade war, Turkey currency crisis and international trade disputes.
"There is a slight reduction in open interest in the week to (last) Thursday and this suggests a further reduction in short positioning, and could help maintain some price support in gold," said Nicholas Frappell, general manager at Australia-based ABC Bullion.
Furthermore, the investors are anxiously waiting for the U.S economic data like the manufacturing survey (Tuesday) and employment report (Friday) that can have a bearing in the gold prices.
The liquidations in the SPDR, the world's largest gold-backed exchange-traded fund, continue to tumble. Since, achieving a peak in late April, it has decreased by over 13%.
Meanwhile, spot silver was down by 0.2% to $14.47 an ounce. Platinum increased to $786.60 an ounce and palladium was also down 0.3% to $978.50.