(Reuters) – Gold prices fell in holiday-thinned trade on Monday as the dollar strengthened and share markets rose, though lingering trade tensions between the United States and China limited losses for the safe-haven metal.

Spot gold was down 0.3% at $1,729.05 per ounce by 0924 GMT. U.S. gold futures fell 0.4% to $1,729.40. Most markets were closed in the United States, Britain and some countries in Asia for public holidays.

“The main driver probably why gold is down is because the dollar is slightly stronger and also the risk sentiment, in spite of renewed tensions between the U.S. and China seems to be still on the positive side,” UBS analyst Giovanni Staunovo said.

The dollar rose against its key rivals, making gold more expensive for holders of other currencies.

European shares gained as optimism over easing of lockdowns and signs of more stimulus for the battered euro zone economy helped sentiment.

On the geo-political front, China’s proposed national security legislation for Hong Kong could lead to U.S. sanctions, White House National Security Adviser Robert O’Brien said on Sunday.

U.S.-China tensions have risen in the past few weeks over the source of the novel coronavirus pandemic, which has infected more than 5.40 million people globally.

“Trade war tensions are on the rise, which should continue to hold a bid under gold prices over the short term supported by the bullish cocktail of economic, trade, and geopolitical factors,” Stephen Innes, chief market strategist at financial services firm AxiCorp, said in a note.

Indicative of sentiment, SPDR Gold Trust holdings rose 0.4% to 1,116.71 tonnes on Friday, while speculators increased their bullish positions in COMEX gold and silver contracts in the week to May 19.

Elsewhere, palladium gained 0.9% to $1,964.09 per ounce, while platinum dropped 1.6% to $826.76, and silver slipped 0.7% to $17.06.