Mubasher: Gold prices declined on Monday as a standoff in trade talks between Washington and Beijing dragged yuan (CNY) down, making the precious metal more expensive for investors from China, the world’s biggest consumer, Reuters reported.

At 8:23 am GMT, US gold futures fell 0.30% to $1,283.60 per ounce, while spot gold declined 0.21% to $1,283.39 per ounce.

US tariff hikes on $200 billion in Chinese imports came into effect on Friday, upping the ante between the world’s two biggest economies. The US move came right after President Donald Trump accused Beijing of backtracking on earlier commitments made during the bilateral talks.

The offshore Chinese yuan hit the lowest level in over four months against the US dollar at CNY 6.904, making the bullion less affordable for buyers in China.

By 8:34 am GMT, the USD/CNY pair climbed 0.72% to CNY 6.8754.

A sharp rise in the yellow metal’s yuan-denominated price “is probably taking the edge off demand and maybe inducing some people to offer [sell] gold,” ABC Bullion global general manager Nicholas Frappell was quoted by Reuters.