Gold prices dip as fears of widening trade war ease

Gold prices inched down in early trade on Monday as concerns over an escalation in the US-China trade war eased, boosting the dollar.

Spot gold was down 0.2 percent at $1,494.30 per ounce, as of 0104 GMT. In the previous session, prices fell to their lowest since Sept. 18 at $1,486.60.

US gold futures were 0.2 percent lower at $1,503.3 per ounce. 

Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.22 percent to 922.88 tonnes on Friday.

Hedge funds and money managers raised their bullish positions in COMEX gold and reduced bullish bets on silver contracts in the week to Sept. 24, the US Commodity Futures Trading Commission (CFTC) said on Friday.