Gold prices fell on Monday as investors turned to the dollar as a safe haven after broad U.S. tariffs raised fears of a global recession.

However, analysts remained optimistic about bullion given the challenging economic environment.

Spot gold fell 0.2% to $3,030.69 an ounce by 9:01 a.m. ET (1301 GMT), after hitting a more than three-week low of $2,971.09 earlier in the session. U.S. gold futures rose 0.5% to $3,048.90.

"Gold prices fell as investors turned to cash and other safe havens such as the Swiss franc and Japanese yen amid market turmoil, which creates the risk of a deeper correction," said Nikos Tzabouras, senior market analyst at Tradu.com.

The dollar strengthened against other major currencies, pulling away from a six-month low hit last week. A stronger US dollar makes gold more expensive for holders of other currencies.

Major US stock indexes and futures fell, with the S&P 500 set to confirm a bear market, while volatility gauges jumped as US President Donald Trump showed no sign of backing down on his tariff plans.

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

Futures now indicate about a 120 basis point rate cut by the US Federal Reserve in December, with the market pricing in about a 47% chance of a US rate cut in May.

Lower interest rates boost bullion's appeal as it bears no interest.

"Gold's correction remains relatively shallow with key support levels holding, most notably the trendline from the January low of $2,975 ahead of the February high around $2,955," Hansen said.

Gold, which is seen as a safe haven during times of political and financial uncertainty, hit an all-time peak of $3,167.57 on Thursday, boosted by strong inflows into the safe-haven asset amid geopolitical uncertainty and strong central bank demand.

Spot silver rose 2.2% on Monday to $30.19 an ounce, recovering from a near seven-month low hit the previous day.

Spot platinum edged up 0.2% to $928.19, while palladium gained 1.5% to $928.19.

Source: Reuters