2019.03.1814:39:00UTC+00Gold Futures Settle Marginally Lower

Gold prices edged lower on Monday as investors opted for riskier assets amid optimism about U.S.-China trade deal after reports said the two countries have made further "concrete progress" on the text of a final agreement.

However, the decline was just marginal as the dollar stayed subdued ahead of the Federal Reserve's monetary policy meeting, due later this week. It is widely expected that the Fed will sound dovish with regard to rate hikes.

The dollar index, which moved in a tight range, was up by about 0.06% at 96.58.

Gold futures for April ended down $1.40, or 0.1%, at $1,301.50 an ounce, around $5.00 off the day's high.

On Friday, gold futures for April ended up $7.80, or 0.6%, at $1,302.90 an ounce.

Silver futures for May ended down $0.002, at $15.322 an ounce, while Copper futures for May settled at $2.9090 per pound, gaining $0.0030 for the session.

The Fed is likely to hold rates unchanged if recent economic reports are any indication. Recent data showed U.S. factory production slumped for a second month in February. Factory activity in New York state hit nearly a two-year low this month and Japanese exports fell for a third month in February, indicating the global economy is facing major headwinds from the trade war.

In economic news today, homebuilder confidence in the U.S. has held steady in the month of March, according to a report released by the National Association of Home Builders.

The report said the NAHB/Wells Fargo Housing Market Index came in at 62 in March, unchanged from February. Economists had expected the index to inch up to 63.

"Builders report the market is stabilizing following the slowdown at the end of 2018 and they anticipate a solid spring home buying season," said NAHB Chairman Greg Ugalde.