Gold prices rose on Monday as the dollar fell against the yuan after U.S. President Donald Trump said he would delay an increase in tariffs on Chinese goods, while palladium surged to a record high.
Spot gold rose 0.2 percent to $1,330.48 per ounce at 0532 GMT. U.S. gold futures were steady at $1,333.
The offshore yuan strengthened 0.6 percent to 6.673 yuan against the dollar, after hitting its highest level since mid-July, on the news that Trump might not raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent.
A strong yuan makes gold cheaper for world's leading gold consumer, China.
Trump said on Sunday that he would delay an increase in tariffs on Chinese goods that had been scheduled for later this week, citing "substantial progress" in Sino-U.S. trade talks over the weekend, and that he and his Chinese counterpart would meet to seal a deal if progress continued.
"The dollar is weaker today after Trump's extension of tariff deadline," said Jeffrey Halley, senior market analyst, OANDA.
"Gold, as it moves into the European and New York trading session, might come under pressure from the stock market," Halley said, adding that there won't be any sustained downward pressure until there is more information on the trade deal.
Asian shares scaled a 5-month peak after Trump's decision to extend the deadline improved appetite for riskier assets.
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