Gold prices dropped more than 1% on Monday as easing U.S.-China trade tensions boosted investors' risk appetite and dented demand for safe-haven assets such as bullion, while a stronger dollar also piled on the pressure.

Gold retreated sharply from an all-time high in the past week as risk-aversion sentiment abated following Trump’s softened tone on China tariffs. While the price drop may continue in the near term, analysts expect gold to extend its long-term rally due to ongoing uncertainties.