Gold prices pared earlier losses on Monday, as some safe-haven demand filtered through and as strong central bank buying supported prices after they dropped to an over three-week low, while analysts continued to see a bullish outlook for bullion.

Spot gold was down 0.6% at $3,019.63 an ounce, as of 0745 GMT.

Earlier in the session, gold dropped around 2% to its lowest point since March 13, as jittery investors offloaded the precious metal to offset losses elsewhere, amid fears of a global recession, fuelled by an intensifying trade war.

U.S. gold futures firmed 0.1% to $3,037.30.

Gold dropped over 3% on Friday, after U.S. President Donald Trump's bigger-than-expected tariff measures rippled across global markets, wiping out nearly $6 trillion in value from U.S. stocks last week and causing Japan's Nikkei share average to tumble nearly 9% on Monday.

China retaliated with a slew of counter-measures including extra levies of 34% on all U.S. goods and export curbs on some rare earth metals.

"We've seen some forced selling coming through the market, a lot of liquidation to cover losses in other assets. The fundamentals are really good, but when you get this kind of panic taking hold, irrationality can take over and markets become much less efficient," Capital.com's financial market analyst Kyle Rodda said.

However, gold held above the $3,000/oz mark, as continued purchases from central banks, along with some safe-haven flows kept demand afloat.

China's central bank added gold to its reserves in March for the fifth straight month.

Spot silver gained 1.2% to $29.92 an ounce, after marking its lowest level in nearly seven months.

Spot platinum fell 0.3% to $914.35, palladium lost 0.7% to $905.31.

Source: Reuters