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Palladium hits lowest since 2018

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Gold down over 2%

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Platinum down more than 4%

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Stock markets tumble as investors flee risk

(Rewrites through out as of 1415 GMT)

By Anushree Ashish Mukherjee

Aug 5 (Reuters) - Gold fell more than 2% on Monday,

caught in the slipstream of a global, wider market selloff

driven by mounting economic concerns, although analysts said

this would be a temporary correction for the safe haven.

Spot gold was down 2.2% at $2,389.79 an ounce by

10:15 a.m. ET (1415 GMT). U.S. gold futures lost 1.6% to

$2,430.00.

Spot silver was down 5.1% at $27.08.

Wall Street tumbled, as fears of the United States tipping

into recession following weak economic data last week rippled

through global markets.

"Investors are spooked and they're selling what they can,

and that includes gold and silver," said Jim Wycoff, senior

analyst at Kitco Metals.

The sell-off in autocatalysts platinum and palladium also

reflected deepening concerns over industrial demand.

Platinum fell 4.3% to $917.10 and palladium

lost 3.5% to $859.00 after hitting its lowest since August 2018.

The two metals are used in engine exhausts to reduce emissions.

While gold is considered a safe refuge during such

uncertainties, it was not immune to Monday's sell-off as

investors dumped assets across the board.

Treasury bonds, meanwhile, were in demand, with U.S. 10-year

yields touching the lowest since mid-2023 as fears

of a recession worsened after a bleak July payrolls report.

However, analysts said gold, which has risen more than 16%

thus far this year, could regain its footing looking ahead,

given the persistent and political uncertainties and also on

expectations of interest rate cuts from the Federal Reserve,

which should bode well for the zero-yield bullion.

Markets were now expecting the central bank to cut by as

much as 50 basis points in the September meeting.

"Elevated geopolitical tensions and recent hopes for even

greater Fed rate cuts should create supportive conditions for

bullion. Ultimately, gold should be able to post a new record

high once nerves settle," said Han Tan, chief market analyst at

Exinity Group.