Gold prices edged up on Monday as the US debt ceiling stalemate and concerns of an economic slowdown steered some traders towards the safe-haven metal.

Spot gold was up 0.1% at $2,013.79 per ounce by 0249 GMT, after falling for three sessions. US gold futures eased 0.1% to $2,018.20.

Recent downside surprises in US economic data have lifted the chances of a recession over the next 12 months, with safe-haven flows providing somewhat of a cushion for gold, said Yeap Jun Rong, market analyst at IG.

Friday’s data showed US consumer sentiment slumped to a six-month low in May on worries that political haggling over raising the federal government’s borrowing cap could trigger a recession.

US President Joe Biden said he expects to meet with congressional leaders on Tuesday for talks on a plan to raise the nation’s debt limit and avoid a catastrophic default.

Bullion tends to gain during times of economic or financial uncertainty, but higher interest rates dim non-yielding gold’s appeal.

“Gold held onto recent gains, with the precious metal trading just below its record high as the market assesses the Fed’s next move,” ANZ said in a note.

Markets are pricing in a 77.7% chance of the US central bank holding rates at the current level in June, according to the CME FedWatch tool.

But taking some shine off gold, rival safe-haven dollar rose to a five-week high against major peers and made bullion less affordable for overseas buyers.

Gold on course for weekly drop on stronger dollar

“Near-term, (gold) prices remain locked in a rising channel pattern since late March this year, while the key psychological $2,000 level will remain a key support to defend,” IG’s Yeap said.

Spot silver rose 0.4% to $24.01 per ounce, platinum advanced 0.3% to $1,052.44, while palladium was listless at $1,509.91.