Gold firmed on Monday after touching a historic milestone last week, as geopolitical tensions, jitters about tariffs escalating trade frictions, and increased hopes of interest rate cuts from the U.S. Federal Reserve continued to fuel safe haven demand.
Spot gold rose 0.1% to $2,986.53 an ounce, as of 0307 GMT. Bullion rose above the $3,000/oz milestone to notch a record high at $3,004.86 on Friday.
U.S. gold futures eased 0.2% to $2,994.60.
“The recent rally in gold has been driven by stagflationary fears,” said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA, adding that short-term momentum remains positive with the next intermediate resistances at $3,016 or $3,030.
There are “no guarantees” there will not be a recession in the U.S., although there could be an adjustment, Treasury Secretary Scott Bessent said on Sunday.
U.S. consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations soared amid worries that President Donald Trump’s sweeping tariffs, which have ignited a trade war, would boost prices and undercut the economy.
Geopolitical tensions have also been persistent, with the U.S. vowing to keep attacking Yemen’s Houthis until they end attacks on shipping, and Israeli military strikes killing at least 15 Palestinians in the Gaza Strip over the past 24 hours.
Gold tops $3,000 for first time on Trump’s tariff threats
Gold, a hedge against political risks and inflation, has gained around 14% so far in 2025.
Markets now await the Fed’s monetary policy meeting on Wednesday, followed by Chair Jerome Powell’s speech.
“An upgrade of inflation forecast in the dot plot and Powell’s hint during the press conference on the economic uncertainty that may arise due to the…trade tariff policy may support a firmer gold price,” Wong said.
Spot silver shed 0.1% to $33.76 an ounce, platinum added 0.1% to $994.50, and palladium eased 0.1% to $963.83.
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