04.03.201906:13:00UTC+00Gold Falls Amid Improved Risk Appetite

Gold prices fell on Monday to extend losses from the previous session as improved prospects of a trade deal between China and the United States helped lift demand for riskier assets.

Spot gold dropped half a percent to $1,287.11 per ounce while U.S. gold futures were down 0.9 percent at $1,287.85 per ounce.

Investor risk appetite improved somewhat after the Wall Street Journal and the Bloomberg News reported that the U.S. and China are close to reaching a trade deal that could see both sides ending the tit-for-tat war of tariffs.

After delaying plans to impose 25 percent tariffs on Chinese goods, U.S. President Donald Trump has reportedly asked China to immediately remove all tariffs on U.S. agricultural products.

The dollar consolidated gains after posting its biggest monthly rise in four months ahead of key macro data due this week.

The European Central Bank meets this week, with analysts expecting a fresh round of bank funding to spur credit growth.