Gold prices fall in thin trade

BEIJING, Feb 04 (Reuters): Gold prices slipped on Monday as risk-aversion waned amid some signs of progress in US-China trade talks and as the dollar firmed.

Spot gold fell about 0.4 per cent to $1,313.38 per ounce by 0720 GMT, having hit $1,326.30 on Thursday - its highest level since April 26.

US gold futures fell 0.4 per cent to $1,316.8 per ounce.

"The plunge (from Thursday's peak) came along with fading enthusiasm for safe havens, as US and China are moving to close a deal and many uncertainties surrounding the US government shutdown, Brexit, Fed policy were cleared last week," said Margaret Yang, a market analyst with CMC Markets.

The US-China trade talks had a "good vibe" with much work remaining, White House economic adviser Larry Kudlow said on Friday, fanning hopes of an end to the long-drawn trade tiff between the world's two largest economies.

Meanwhile, the dollar was near a one-week high against the yen on the back of robust US jobs data.

"Upbeat non-farm payroll suggests the US economy is riding a strong momentum, dampening demand for safe-haven assets like gold," Yang said, adding that this failed to change the market's view of the Federal Reserve's dovish stance with regard to its monetary tightening policy.