Gold slipped for a third straight session on Thursday as the U.S. dollar extended its rebound from six-week low after a meeting between North Korean and Chinese leaders.
The yellow metal tumbled 1.53 percent on Wednesday on signs of easing geopolitical tensions after North Korea's Kim Jong Un’s visit to Beijing.
Kim pledged his commitment to 'denuclearization' and to meet U.S. officials, China said on Wednesday.
"We're going to be cautiously optimistic but we feel like things are moving in the right direction and the meeting yesterday was a good indication that the maximum pressure campaign has been working," White House spokesperson Sarah Sanders commented on Kim’s visit.
Kim and Trump could meet in late May, which, if happened, would a dramatic shift in the relation between the two countries after several months of exchange of military threats between the two leaders.
Trump's tariffs on Chinese goods may not be imposed until early June, administration officials said on Wednesday, adding some positivity to the sentiment.
The ease of geopolitical tensions has cut demand on gold, given its safe haven characteristic, while the strength of the dollar dented the appeal of the metal as an alternative investment.
The dollar index, on the other hand, extended its rebound from a six-week low of 88.51 hit on March 27 to trade at one-week high of 89.75.
The green currency’s index augmented 0.92 percent the previous session, where it got some impetus from the release of a better than forecast U.S. fourth-quarter GDP data.
Meanwhile, gold is trading slightly lower at $1324.58 an ounce after touching a six-day low of $1322.90.
However, bullions are set to generate the third straight quarterly gain, the best run since 2011, where fund holdings are the highest in half-decade.
Gold gained 3.06 percent in the quarter ended September 2017, then added
1.76 percent in the following three months, whilst has soared 1.72 percent this