Investing.com-- Gold prices fell to a three-week low in Asian trading on Monday, as investors liquidated positions to cover losses in other markets amid intensifying global trade tensions and mounting fears of a global recession.

As of 02:12 ET (06:12 GMT), Spot Gold slipped 0.5% to $3,023.10 per ounce, its lowest level since March 13.

Gold had hit consecutive record highs last week, but retreated after Trump’s tariff announcement.

Gold futures expiring in June were largely unchanged at $3,039.0 an ounce on Monday.

Gold slides as recession fears mount after Trump tariffs

The decline in gold—typically seen as a safe haven—comes despite broader risk-off sentiment, as traders weighed the potential fallout from sweeping tariffs announced by U.S. President Donald Trump.

On April 2, Trump unveiled a blanket 10% tariff on all imports and higher, targeted duties of up to 49% on goods from key trading partners, including China and the European Union.

The move has rattled global markets, with China retaliating with a 34% tariff on a wide range of U.S. imports and the EU signaling a coordinated response. The escalating trade war has stoked fears of a sharp slowdown in global growth.

Goldman Sachs raised its forecast for a 2025 recession to 45%, up from 35% just a week earlier, while JPMorgan increased its estimate for the likelihood of a global recession this year to 60%, from a prior 40%.

“Even gold – traditionally a safe haven – tumbled from a record high it had reached earlier last week as investors sold off the precious metal along with other asset classes to cover losses elsewhere,” ING analysts said in a note.

The continued weakness in the U.S. dollar, and growing bets of Federal Reserve interest rate cuts provided some support to gold, as the decline was much less compared to other financial markets.

The US Dollar Index slipped 0.5% in Asian trading on Monday, leading to gains in some precious metals.

Silver Futures jumped 2% to $29.805 an ounce, while Platinum Futures were little changed at $914.35 an ounce.

Copper jumps on weak dollar, tariff concerns persist

Copper prices rose on Friday after a weekly loss, as the weaker greenback provided respite, however, tariff concerns capped gains.

“A global trade war is bearish for industrial metals in the context of slowing global growth. China is the biggest consumer of industrial metals, so a trade war with the US is of particular interest for metals markets,” ING analysts added.

Benchmark Copper Futures on the London Metal Exchange rose 1.1% to $8,846.50 a ton, while Copper Futures expiring in May inched 0.3% lower to $4.4389 a pound.