Investing.com - Gold prices gained on Monday in Asia as recession fear sparked safe-haven demand.

traded up 0.3% at $1322.05 on the Comex division of the New York Mercantile Exchange by 1:25 AM ET (05:25 GMT). The precious metal last week posted its third consecutive weekly gain and rose 1%, the most since early February.

On Friday, the spread between 3-month Treasury bills and 10-year note yields inverted for the first time since 2007 after U.S. manufacturing data missed estimates. This inversion of the yield curve is widely seen as a leading indicator of recession.

The news sent global stocks lower, with Japan’s plunging more than 3% on Monday while Hong Kong’s also slid close to 2%.

On the other hand, gold prices rose as appetite for safer assets increased.

"Price action in gold continues to lend strength to our view that expected data deterioration will help spark a gold rally as interest rates continue to fall in the context of a slowing global economy," analysts at TD Securities wrote in a note.

The Federal Reserve kept interest rates on hold earlier this month and indicated that there would be no further rate hikes this year - after indicating in December that two could take place.

Elsewhere, the uncertain Brexit situation will also be closely monitored. Friday’s deadline for the U.K. to exit the European Union has been pushed back by two weeks to April 12

If lawmakers refuse to approve the deal for a third time a number of options, including a no-deal Brexit, will open up.

Sino-U.S. trade developments are also expected to be in focus, as high-level officials from the U.S. and China gather in Beijing this week for more trade talks.