Gold is holding and extending the gains from the recent four day winning run

Gold futures for April delivery on the Comex division of the New York Mercantile Exchange gained $1.00, or 0.07%, to $1,356.0 a troy ounce by 2:50AM ET (06:50 GMT). The U.S. dollar index that tracks the USD against a basket of six major currencies last stood at 88.54, down 0.11%. Gold prices have been on a streak of gain for Monday and Tuesday trading sessions, as the dollar gave up its earlier gains against other currencies in Asia amid receding trade tensions between the world’s two largest economies after the U.S. and China hinted talks to ease fears of a full-blown trade war.

Currently, Gold trades at a five-week high after sharp rally but risk-on appetite may weigh on the precious metal. Most likely the situation is about Gold consolidating near 6-week tops, just above $1350 level, but we will be watching the developments closely.

Gold prices rose to a five-week high of $1,356.70 overnight buoyed by a weaker dollar and heightened tensions between Russia and the West, even as concerns over trade friction between Beijing and Washington subsided.

Prices of the precious metal were boosted after the U.S. said it would expel 60 Russian diplomats, joining a coordinated global response punishing the Kremlin following a nerve agent attack on a former Russian spy in Britain.

Russian Deputy Foreign Minister Sergei Ryabkov said on Tuesday that Moscow would respond harshly to the measures.

Meanwhile, fears over the prospect of an all-out trade war between the U.S. and China eased following reports on Monday that the two sides were negotiating to resolve the issue behind the scenes.

Sources: 

https://www.investing.com/news/commodities-news/gold-prices-pull-back-from-5week-highs-1363605

https://www.investing.com/news/commodities-news/gold-prices-gain-as-dollar-slip-despite-easing-trade-war-fear-1363500

https://www.ft.com/content/cf917540-3128-11e8-ac48-10c6fdc22f03

https://www.fxstreet.com/markets/commodities/metals/gold