Gold fell as its haven status was impacted by signs of progress in trade talks between the US and China, along with some relief to geopolitical tensions.

Bullion fell as much as 1.8% in early trading in Asia to around $3,265 an ounce, following a weekly gain of 2.6% as investors focused on the outcome of upcoming trade talks between the world’s two largest economies. The dollar strengthened — making gold more expensive for most buyers — after the US and China both reported “substantial progress” following two days of discussions in Switzerland, although neither side immediately announced specific measures.

While bullion could test the lower end of of its current $3,200 to $3,400 range if there is continued progress in US-China trade talks, “dips to and through $3,200 in gold should be very well supported for an eventual move to fresh record highs,” said Robert Rennie, head of commodity and carbon research at Westpac Banking Corp. in Sydney.

Gold stocks dropped in overnight trading. Harmony Gold and Gold Fields fell 6%; Agnico Eagle Mines and Newmont Mining fell 4%; Kinross fell 3%; Barrick Mining fell 2%.