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  • The Sino-U.S. trade war is in focus, with the Wall Street Journal reporting that Beijing has canceled mid-level trade talks with Washington.
  • The Federal Reserve is also widely expected to raise benchmark interest rates in their meeting this week.

Spot gold inched down 0.2 percent to $1,196.51 by 0039 GMT, after falling as much as 1.3 percent on Friday on a stronger dollar.

U.S. gold futures were virtually unchanged at $1,201.1 an ounce.

Liquidity is expected to be thin during Asian hours as markets in Japan, China and South Korea are closed for a holiday.

Investors were squarely focused on the Sino-U.S. trade war as China added $60 billion of U.S. products to its import tariff list, retaliating against duties on $200 billion of Chinese imports that come into effect on Monday.

China also canceled mid-level trade talks with the United States, as well as a proposed visit to Washington by vice premier Liu He originally scheduled for this week, the Wall Street Journal reported.

Investors are also awaiting this week's Federal Reserve meeting. The U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes. The Fed will end its two-day policy meeting on Wednesday.

Financial markets need to gird for a lengthy spell of turbulence as more of the world's top central banks begin shutting down stimulus programs and raising interest rates, the Bank for International Settlements said in its latest report.


source: Reuters

Technical:

Gold price manages to bounce back above the 200-SMA on the Hourly 4 chart last Friday after touching the low of $1,199.79. Gold price once again open below the 200-SMA this Monday.

Support now at trendline supoort of $1,194 on the Hourly 4 chart. As gold price trade within a range of $1,210 - $1,194.