Palladium hits lowest since 2018
Platinum down more than 3
Stock markets tumble as investors flee risk

Aug 5 Reuters Gold prices eased in volatile trading on Monday as investors liquidated positions in tandem with a broader equities selloff, though analysts said bullion39;s safehaven appeal remains strong as U.S. recession fears mount.

Spot gold was down 0.8 at 2,425.04 an ounce by 0856 GMT. U.S. gold futures lost 0.1 to 2,465.90.

There39;s some truth in the old chestnut that all correlations go to one in a crash, and with traders needing to liquidate winning positions to cover margin calls on other assets, gold39;s volatility signals the level of panic hitting equity markets, said Adrian Ash, director of research at Bullionvault.

Stock markets tumbled, with Japanese shares exceeding their 1987 Black Monday loss at one point, as fears of a U.S. recession prompted investors to offload risk assets.

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.

There is likely resistance at the old high of 2,484, but geopolitical tensions and concerns about whether the Fed has fallen behind the curve are all supportive for gold, said StoneX analyst Rhona O39;Connell.

Spot silver was down 2.5 at 27.83 an ounce.

Platinum fell 3.4 to 925.65 and palladium lost 3 to 862.83 after hitting its…