The offshore yuan strengthened 0.2 percent to 6.689 yuan against the dollar, after hitting its highest level since mid-July. Trump said on Sunday that he would delay an increase in tariffs on Chinese goods that had been scheduled for later this week, citing "substantial progress" in Sino-US trade talks over the weekend, and that he and his Chinese counterpart would meet to seal a deal if progress continued.
Spot gold rose 0.2 percent to $1,330.26 per ounce at 0655 GMT. US gold futures were steady at $1,332.70.
Trump's extension of tariff deadline has weakened the dollar, driving gold up, said Jeffrey Halley, senior market analyst, OANDA.
"Gold, as it moves into the European and New York trading session, might come under pressure from the stock market," Halley said, adding that there won't be any sustained downward pressure until there is more information on the trade deal.
"Gold prices, though hinting for a looming bearish correction on risk-on market sentiments, will remain firmly supported on rising economic uncertainties and heightened geopolitical risks in 2019," Benjamin Lu, an analyst with Singapore-based Phillip Futures said in a note.
On the technical front, gold may retest a support at $1,321 per ounce, a break below which could cause a loss to $1,311, according to Reuters analyst Wang Tao.