Gold prices eased in volatile trading on Monday as investors liquidated positions in tandem with a broader equities sell-off, though analysts said bullion's safe-haven 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.

"There'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, gold'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 O'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 lowest since August 2018. The two metals are used by automakers in engine exhausts to reduce emissions.

Both metals are under pressure from the long-term risk presented by the transition to net zero emissions, but there are massive short positions that will eventually be unwound, so there is a good chance that both of them will reach around $1,000, O'Connell added.

(Reporting by Ashitha Shivaprasad in Bengaluru Editing by David Goodman)