Gold slips as investors opt for dollar

Gold prices fell on Monday as investors opted for the dollar as a safe haven after sweeping US tariffs raised fears of a global recession, reports Reuters.

Analysts, however, remained bullish on bullion given the challenging economic conditions.

Spot gold was down 0.2% at $3,030.69 an ounce as of 09:01 a.m. ET (1301 GMT), after hitting a more than three-week low of $2,971.09 earlier in the session. US gold futures rose 0.5% to $3,048.90.

"Gold retreats as investors turn to cash and other safe havens like the Swiss Franc and the Japanese Yen amid market turmoil, creating a risk of deeper corrections," said Nikos Tzabouras, senior market analyst at Tradu.com.

The dollar rose against its rivals, moving away from a six-month low touched last week. A stronger greenback makes gold more expensive for other currency holders.

Major stock indexes and US share futures plunged, with the S&P 500 poised to confirm a bear market, while volatility gauges spiked as US President Donald Trump showed no sign of backing away from his tariff plans.

"Once the dust settles, the rising recession risks, a weaker dollar, lower real yields and bigger rate cut expectations will all play their part in supporting a rebound (in gold)," said Ole Hansen, head of commodity strategy at Saxo Bank.