Gold fell more than 3 percent on Friday, erasing gains from earlier in the week, as investors sold off bullion to cover their losses from a wider market meltdown as an intensifying trade war sparked concerns of a global recession.

Spot gold was down 2.9 percent at $3,024.2 an ounce as of 1:44 p.m. EDT (1744 GMT), after hitting a session low of $3,015.29 earlier in the session. It hit a record high of $3,167.57 on Thursday. For the week, gold was down 1.9 percent. US gold futures settled 2.8 percent lower at $3,035.40.

On the technical front, spot gold price managed to hold above its 21-day moving average of $3,023.

"We tend to see gold as a liquid asset being used to meet margin calls elsewhere, so it's not unusual for gold to sell off after a risk event given the role that it can play in a portfolio," said Suki Cooper, an analyst at Standard Chartered.