Gold falls over 2% in volatile market but retains safe-haven appeal

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Gold,Silver,Platinum

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Aug 5 - Gold prices fell more than 2% in volatile trading on Monday as investors liquidated positions in tandem with a broader equities selloff, though analysts said bullion's safe-haven appeal remains strong as U.S. recession fears mount.

Data on Friday showed that the U.S. unemployment rate jumped to 4.3% in July, raising the likelihood of a Federal Reserve cut to interest rates in September, with markets now expecting the central bank to cut by as much as 50 basis points. Bullion, often used as a hedge against geopolitical and economic risks, thrives when interest rates are low.Spot silver was down 5.7% at $26.92 while platinum fell 4.1% to $918.35 and palladium lost 4.5% to $849.05 after hitting its lowest since August 2018.

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