Gold Price Forecast: XAU/USD edges lower to near $3,300 as US-China trade tensions ease

• Gold Price loses ground to near $3,310 in Monday's early Asian session, down 0.30% on the day. 
• De-escalating trade tensions between the US and China underpins the Gold price. 
• The fears of the US recession might help limit the Gold's losses. 

The Gold price (XAU/USD) drifts lower to around $3,310 during the early Asian session on Monday. The precious metal retreats after hitting its record high last week amid signs that global trade tensions may be easing.

US Agriculture Secretary Brooke Rollins said on Sunday that the Trump administration is having daily conversations with China over tariffs, per Reuters. Rollins noted that there were ongoing talks between the two nations and that trade deals with other nations were "very close." 

"Headlines over potential, partial exemptions in retaliatory tariffs further boosted sentiment today and allowed gold to dip below $3,300 levels," said Yuxuan Tang, a strategist at JPMorgan Private Bank.

On the other hand, US President Donald Trump's announcement of broad and steep tariffs earlier in April prompted fears of the US economy tipping into a recession in recent weeks. The International Monetary Fund (IMF) warned last week that the US is confronting an increased risk of recession as Trump's trade war pushes the global economy into a significant slowdown. This, in turn, could boost the Gold price, a traditional safe-haven asset. 

Gold traders will closely monitor the preliminary reading of US Gross Domestic Product (GDP) for the first quarter (Q1), which is due later on Wednesday. On Friday, the attention will shift to the US April employment report, including Nonfarm Payrolls (NFP), Unemployment Rate and Average Hourly Earnings.