Spot gold was little changed at $1,521.62 per ounce at 0734 GMT, after climbing to its highest since Sept. 6 at $1,526.80 in the previous session.
US gold futures were down 0.3% to $1,527.10 per ounce.
"Both the countries (China and the United States) have given some indication again that an agreement might be reached and that is affecting gold a bit in a negative way but mostly it is trading in sidelines," said Michael McCarthy, chief market strategist at CMC Markets. "If the talks fall apart again, it will support gold."
US Treasury Secretary Steven Mnuchin told the Fox Business Network that discussions with China were scheduled in two weeks, propping up the dollar and global shares.
Concerns mounted over a slowing global economy after a survey out of the Euro zone on Monday showed business growth stalled this month, dragged down by shrinking activity in powerhouse Germany, where a manufacturing recession deepened unexpectedly.
"Geopolitical uncertainties and recessionary fears from euro zone with Brexit deadline approaching, overall sentiments will be positive for gold and silver," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.
Indicative of sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.61% to 908.52 tonnes on Monday, the highest since November 2016.