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Gold prices edged lower on Monday as trade uncertainty weighed on the yuan, making the bullion expensive for buyers in the world's largest consumer - China.

China's yuan is on track for its worst daily fall in nine months after the U.S.-China trade talks ended without an agreement and U.S. President Donald Trump defended his tariff policy, saying we are right where we want to be with China.

Spot gold slid 0.2 percent to $1,283.73 per ounce, while U.S. gold futures were down 0.25 percent at $1,284.15 an ounce.

The U.S.-China trade war between the world's two leading economies escalated on Friday after the U.S. increased tariffs on $200 billion of Chinese goods to 25 percent, saying Beijing "broke the deal" by reneging on earlier commitments.

China's foreign ministry said on Monday the country will never surrender to external pressure and has the confidence and the ability to protect its lawful and legitimate rights.