Gold prices fell Tuesday as investors sold the commodity to cover losses on global stock markets.

The price of gold for immediate delivery fell to $849.50 an ounce in European trading, a drop of almost 18 dollars from late Monday in London. Gold prices have lost more than five percent since hitting a record high of $914.30 cents on January 14.

Dealers say investors are likely to start buying gold again once they absorb the impact of stock market losses. Gold is traditionally seen as a safe haven asset and store of value in times of market uncertainty.

Analysts say investors also may shift money into gold if new U.S. interest rate cuts further weaken the dollar.

Some information for this report was provided by AFP and Reuters.