Gold prices remained firm on Monday after hitting a historic high last week, driven by geopolitical tensions, trade war concerns, and expectations of U.S. Federal Reserve rate cuts.
Spot gold edged up 0.1% to $2,986.53 per ounce as of 0307 GMT, following Friday’s record-breaking surge past $3,000. Meanwhile, U.S. gold futures dipped 0.2% to $2,994.60.
Kelvin Wong, senior market analyst at OANDA, attributed gold’s rally to stagflation fears, noting that momentum remains strong, with resistance levels at $3,016 and $3,030.
Investor anxiety intensified after U.S. Treasury Secretary Scott Bessent warned of potential economic adjustments and a possible recession. Consumer sentiment in the U.S. plummeted to a 2.5-year low in March, fueled by inflation concerns and President Donald Trump’s aggressive tariff policies, which have ignited a trade war.
Gold’s appeal as a safe haven asset has been further strengthened by ongoing geopolitical tensions. The U.S. has vowed to continue striking Yemen’s Houthis, while Israeli military operations in Gaza have resulted in casualties.
With gold up nearly 14% in 2025, markets are now focused on the Federal Reserve’s upcoming policy meeting and Chair Jerome Powell’s speech on Wednesday. Analysts anticipate that a hawkish inflation forecast and Powell’s comments on economic uncertainty stemming from trade policies could support higher gold prices.
In other metals, spot silver dipped 0.1% to $33.76, platinum rose 0.1% to $994.50, and palladium slipped 0.1% to $963.83.


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