Gold rates declined in the Indian futures market Monday morning on easing trade war worries and dollar's rise against its peers. MCX Gold June 5 contracts traded 0.18 percent lower at ₹94,818 per 10 grams at 9 am.
International gold prices also declined by over a percent on Monday as easing US-China trade tensions weighed on safe-haven demand.
The US dollar index climbed nearly 0.3 percent, putting pressure on gold demand, making it expensive for buyers in other currencies.
Donald Trump has said the US administration was talking to China for a favourable trade deal. Trump, however, said he would not consider reducing tariffs on China without a major concession.
On Friday, China exempted some US imports from its steep tariffs, though China quickly knocked down Trump's assertion that negotiations were underway, Reuters reported.
Gold prices in Dubai were trading below Dh 400 (Rs 9,292) per gram at the opening of the markets on the first trading day of the week as global rates fell below $3,300 per ounce.
At 9 am UAE time, the 24-karat variant opened at Dh397.5 per gram, down from Dh400 per gram over the weekend.
Among the other variants, 22k, 21k and 18k were trading at Dh368.25, Dh353.0 and Dh302.5 per gram, respectively.
Globally, gold was trading at $3,300.33 per ounce, down 0.97 percent. It slipped below $3,290 in early trade.
The yellow metal recently surged to all-time highs, fuelled by geopolitical uncertainties stemming from the US-China trade war and the increased weaponisation of the dollar in international financial sanctions.
