Investing.com - Gold prices were trading near flat on Monday in Asia as a private survey showed China’s manufacturing activity rebounded unexpectedly.

The Caixin Purchasing Managers’ Index came in at 50.8 for March, higher than the expected 49.9, after shrinking for three straight months. The survey lifted investor sentiment as Chinese stocks surged almost 3% in morning trade.

Prices of the safe-haven gold, however, were flat. Gold futures traded on the Comex division of the New York Mercantile Exchange were unchanged at $1,298.45 per ounce by 12:13 AM ET (04:13 GMT).

Gold lost about 1.4% in March, marking its second consecutive monthly drop. A stronger U.S. dollar was cited as a headwind for the precious metal.

Results of the private survey came after the National Bureau of Statistics reported on Sunday that the official PMI rose to 50.5 in March from February’s three-year low of 49.2. It was the first expansion in four months.

A reading below 50 signals contraction, while a reading above that level indicates expansion.

On the U.S.-China trade front, Chinese Vice Premier Liu He and his team are set for more trade talks in Washington later this week, High-level officials, including U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, travelled to Beijing last week to meet with He. It was reported that negotiations could take “weeks, or even month” before a trade deal could be agreed between the two sides.

Meanwhile, the U.S. dollar index, a major directional driver for gold, slipped 0.1% to 96.750 on Monday ahead of Friday’s U.S. government employment report for March, which comes after the Federal Reserve appeared to rule out the likelihood of any rate hikes this year.

Investors will also get an update on U.S. retail sales and manufacturing activity this week after the U.S. bond market flashed a recession warning when 10-year Treasury yields fell below three-month Treasury bill yields for the first time since 2007 earlier this month.

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