2019.09.3006:56:00UTC+00Gold Prices Fall As Dollar Strengthens

Gold prices drifted lower on Monday as worries of an immediate widening of the Sino-U.S. trade war drove some investors to the safety of the dollar. Spot gold fell 0.65 percent to 1,487.40 while U.S. gold futures were down 0.85 percent at $1,493.85 per ounce.

The U.S. dollar remained supported in cautious trade after media reports suggested that the Trump administration was considering ways to delist Chinese companies from U.S. stock exchanges and limit U.S. investors' portfolio flows into China.

However, the White House said that nothing has been decided yet on curbing some U.S. investments in China.

The Chinese state-owned media called Washington's potential restrictions on U.S. investments in China "the latest attempt at a decoupling" and warned such measures will have significant repercussions for the Chinese and U.S. economies, as well as their companies, in the future.

Investors also await further clues on U.S. interest rate policy after Philadelphia Fed leader Patrick Harker said on Friday he still opposes lowering the central bank's short-term rate target.