Gold prices inched down on Monday as the US dollar steadied and as signs of easing tensions on the Korean peninsula reduced safe-haven demand for the metal. Spot gold had fallen 0.3 percent to $1,318.23 per ounce by 0639 GMT. US gold futures for June delivery declined 0.3 percent to $1,319.20 per ounce. Prices have dropped about 0.5 percent so far in April.
"Gold is still tracked very closely with the dollar," said Helen Lau, analyst at Argonaut Securities. Markets were mostly quiet on Monday with Japan, China and India on holiday and as much of Asia will be closed on Tuesday.
"Geopolitical risks also seem to be turning around ... Everybody want to come to the table and negotiate a deal," Lau added. At their summit on Friday, North Korean leader Kim Jong Un Kim and South Korean President Moon Jae-in declared they would take steps to formally end the 1950-53 Korean War, which ended only with a truce, and work towards the "denuclearisation" of the Korean peninsula.
Hedge funds and money managers trimmed their net long position in COMEX gold contracts and switched to a net long position in silver contracts in the week to April 24, US Commodity Futures Trading Commission (CFTC) data showed on Friday. Spot gold looks neutral in a range of $1,317-$1,326 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.
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