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· Gold prices edged lower on Monday, pressured by a robust dollar, as fears of an escalation in the U.S.-China trade war eased after a report that the United States does not currently plan to de-list Chinese companies from the U.S. stock markets.

Spot gold was 0.4% lower at $1,490.50 per ounce as of 0649 GMT. Prices had hit $1,486.60 in the previous session, their lowest since Sept. 18.

U.S. gold futures dipped 0.6% to $1,497.20 per ounce.

· The White House is not contemplating blocking Chinese companies from listing shares on U.S. exchanges at this time, Bloomberg quoted Treasury spokeswoman Monica Crowley as saying on Saturday.

This came after Reuters reported on Friday the U.S. administration was considering de-listing Chinese companies from U.S. stock markets, fanning worries among investors about the fate of the long-drawn trade war.

· “For the short term, there is some confusion considering the contradicting headlines we are getting on the trade war,” said AxiTrader market strategist Stephen Innes.

“In these situations what investors do is quit their position in equities and switch to bond markets.” This has boosted the dollar, in turn making gold expensive, he added.

Ahead of trade talks with the United States, Chinese Vice Commerce Minister Wang Shouwen said on Sunday the two major economies would resolve their trade dispute “with a calm and rational attitude.”

· Investors also looked for clues on further U.S. interest rate cuts. Philadelphia Federal Reserve Bank President Patrick Harker said on Friday he opposed the central bank’s September rate cut and thinks the Fed should “hold firm” on interest rates.

Higher interest rates boost the dollar, making dollar-denominated gold more expensive for buyers using other currencies and reducing investor interest in non-yielding bullion.

“A less dovish than expected Fed means the rally on gold prices may be capped, but in the near-term, the upward momentum appears intact,” said Howie Lee, economist at OCBC Bank.

· Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.22% to 922.88 tonnes on Friday.

· Speculators raised their bullish positions in COMEX gold and reduced bullish bets on silver contracts in the week to Sept. 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

· Spot gold may break a support at $1,488 per ounce and fall towards$1,462, according to Reuters technical analyst Wang Tao.

· Gold technical analysis: Eyes biggest monthly loss since August 2018

Gold is currently trading at $1,493 per Oz, representing a 1.8% drop from Sept. 1's opening price of $1,523.

That is the biggest monthly loss since August 2018. Back then, the yellow metal had dropped by 1.82%. Also, Gold shed 2.29% in July2018.

The metal may close well below $1,490 and register its biggest loss since July 2018, as the daily chart shows the 14-day relative strength index (RSI) has dipped below 50 and the MACD histogram is again producing deeper bars below the zero line, indicating a strengthening of bearish momentum.

Also, Gold created a bearish lower high at $1,536 last week and is now trading below the 50-day moving average (MA) support of $1,494.

· Elsewhere, palladium was up 0.6% at $1,691.75 per ounce, after hitting a record high at $1,695.14 earlier in the session.

Silver dropped over 1% to $17.34 per ounce and platinum was down0.6% to $924.80 per ounce.

Reference: CNBC, FX Street