Safe-haven commodity gold appeared to ease at the start of the week, sparking relief among investors as Wall Street recovered on Friday.
At 9.20am, gold was at $3,219.54, down slightly from its opening on Monday in Asian trading.
Late last week, China responded to a US tariff hike to 145% by setting tariffs on US goods to 125%.
However, Beijing said it would ignore further US retaliation.
President Donald Trump is considering an exemption for tariffs on Chinese semiconductor products and the electronics supply chain from the previously announced 145% duty.
The tariff update was welcomed by the market, as it provided some relief and supported the US dollar's modest recovery from a 35-month low against other major currencies.
The US Dollar's rise and increased risk appetite continue to constrain the gold price recovery, as traders await the China Trade Balance report and speeches by several US Federal Reserve (Fed) policymakers for further trading guidance.
The market may take the opportunity to take profits from the recent rise in gold prices, using the argument that tariffs on electronics and chips from China are not too high.
