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Gold prices edged higher on Monday after the dollar lost some ground against major currencies, as traders looked ahead to the monetary policy of the U.S. Federal Reserve, due on Wednesday.

The yellow metal came off higher levels subsequently after the greenback came off the day's lows, but still managed to end the session with modest gains.

Worries about trade war resurfaced on reports China has canceled trade talks with the U.S. as tariffs on over $200 billions of dollars worth of Chinese goods took effect.

According to reports, China has also canceled a planned visit to the U.S. by vice premier Liu He.

Gold futures for December ended up $3.10, or 0.30%, at $1,204.40 an ounce.

On Friday, gold futures ended down $10.00, or 0.80%, at $1,201.30 an ounce, the lowest close in about a week. Silver futures for December ended lower by $0.018, at $14.341 an ounce.

Copper futures for December ended down $0.0215, at $2.8360 per pound.

The dollar index, which was down by about 0.35% at 93.47 at one stage, recovered subsequently and was hovering around 93.75 later in the day.

It is widely expected that the Fed would raise interest rates by another quarter point. The central bank's statement and the Fed Chief Jerome Powell's press conference will be in focus as they are expected to give some clues about further rate hikes.