Gold prices slipped on Tuesday as moves by some countries to relax coronavirus-led restrictions overshadowed concerns of souring US-China relations, dampening its safe-haven appeal.
Spot gold declined 0.4% to $1,695.29 per ounce by 0736 GMT. US gold futures fell 0.7% to $1,700.90.
"We are holding quite steady around the $1,700 level. On one side, you've got easing in lockdowns and that is probably improving investor sentiment and a move away from safe havens towards risk assets," said ING analyst Warren Patterson.
"On the other side, tensions between China and the US in relation to COVID-19 are re-igniting once again. These two opposing forces are keeping the market on hold at the moment."
Investors, however, remained worried about brewing Sino-US tensions after President Donald Trump threatened new tariffs on China for its handling of the outbreak, with his administration "turbocharging" an initiative to remove global industrial supply chains from Beijing.
"The consensus is for very bad numbers ... the main catalyst for gold here is the extent to which they can surprise lower or higher. The data should really deviate from expectations to really animate gold one way or the other," DailyFx currency strategist Ilya Spivak said.
Reflecting the appetite for bullion, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.4% to 1,071.71 tonnes on Monday.
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