Gold hits five-month low

Gold slid to a near five-month low on Monday, as the dollar rose and demand for safe-haven assets eased after US Treasury Secretary Steven Mnuchin said a trade war between China and the United States was “on hold”.

Spot gold was down 0.6 percent at $1,283.30 per ounce at 0658 GMT, after earlier hitting $1,281.76, its lowest since Dec. 27.

US gold futures for June delivery were 0.7 percent lower at $1,282.50.

“Gold price is under pressure as the dollar maintains its strength,” said Naeem Aslam, chief markets analyst at Think Markets.

“'On Hold' is a risk-on term...The absence of trade tariffs and hostile tone between the two countries has also impacted the gold price more adversely,” Aslam said.

The dollar rose versus the yen and hit a five month-high against a basket of currencies, after Mnuchin's comments downplaying a trade dispute with China, boosting risk sentiment amid hopes for an easing of trade tensions between the world's two biggest economies.

Chinese state media on Monday praised a significant dialing back of trade tension with the US, saying China had stood its ground and the two countries had huge potential for win-win business cooperation.