Gold prices extended gains on Monday, having jumped more than 1% in the previous session, as rising tensions between the United States and China over the coronavirus' origin bolstered bullion's safe-haven appeal.
Spot gold gained 0.3% to $1,703.77 per ounce by 0752 GMT in thin trade as markets in China and Japan were closed for holidays. US gold futures rose 0.9% to $1,715.20.
"Some sort of fears are there that the trade war might be ignited and such events are good for gold. All these comments from officials indicate a new round of hostility as far as the trade is concerned with China," said Avtar Sandu, a senior commodities manager at Phillip Futures.
Gold rose 18% last year as the Sino-US trade dispute increased demand for the safe haven amid interest rates cuts by the US central bank.
However, "US dollar demand is competing for safe-haven lustre in Asia this morning," said Stephen Innes, chief market strategist at financial services firm AxiCorp, in a note.
Reflecting an appetite for gold, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 1.1% to 1,067.90 tonnes on Friday.