Asian markets were negative on Tuesday following the sluggishness in global equities amid risk-off sentiment.
Spot gold, viewed as a safe-haven asset, was trading at $1,233.56 per ounce, up for the fifth straight session and at a three-month high. The Japanese yen, another safe-haven play due to its large current account surplus, has appreciated strongly against major currencies.
"Investors are nervous about the economy and President Trump's policies," said Kathy LIen, managing director of FX strategy for BK Asset Management, in a late Monday note.
Also, "Trump has been on a campaign to pressure other countries to strengthen their currency which effectively means he wants the dollar to weaken," Lien added.
The yen was fetching 111.68 per dollar in Asian time, falling below the 112 handle yesterday. Against the euro, the yen traded at 119.75, versus levels above 121 seen last week.
U.S. Treasurys also saw increased buying, with the yield on the U.S. 10-Year Treasury notes down to 2.393 percent, compared to levels around 2.411 percent earlier. The Treasury yields move inversely to the price.