Gold prices remained unchanged on Monday after briefly surpassing the $3,000 per ounce milestone last week, driven by persistent geopolitical tensions, concerns over escalating tariffs, and expectations of further interest rate cuts in the United States.
As of 0518 GMT, spot gold held steady at $2,983.09 per ounce, having reached a record high of $3,004.86 on Friday. Meanwhile, U.S. gold futures edged down 0.3% to $2,992.30 per ounce.
Kelvin Wong, senior market analyst for the Asia-Pacific region at OANDA, attributed the recent rally in gold to fears of stagflation. “The metal’s short-term momentum remains positive, with the next intermediate resistance levels at $3,016 or $3,030,” he noted.
Adding to economic concerns, U.S. Treasury Secretary Scott Bessent stated on Sunday that while a recession is not guaranteed, an economic adjustment remains possible. Market sentiment was further dampened by a sharp decline in U.S. consumer confidence, which fell to a nearly two-and-a-half-year low in March. Inflation expectations also surged, fueled by fears that President Donald Trump’s extensive tariff measures could drive up costs and weaken economic growth.
Gold, widely considered a hedge against economic uncertainty and inflation, has risen approximately 14% in 2025.
Geopolitical Developments and Market Outlook
On the geopolitical front, tensions continued as the United States reiterated its commitment to striking Yemen’s Houthi rebels until they cease attacks on commercial shipping. Meanwhile, Israeli military operations in Gaza resulted in at least 15 Palestinian casualties over the past 24 hours.
However, some relief came after Trump announced plans to speak with Russian President Vladimir Putin on Tuesday regarding potential efforts to end the ongoing war in Ukraine.
Investors are now turning their attention to the Federal Reserve’s monetary policy meeting on Wednesday, followed by a speech from Fed Chair Jerome Powell. Wong suggested that any indication of an upward revision in inflation forecasts or Powell’s remarks on economic uncertainty—particularly regarding trade tariffs—could provide further support for gold prices.
In other precious metals trading, spot silver fell 0.3% to $33.67 per ounce, platinum gained 0.4% to $996.80, and palladium inched up 0.1% to $965.70.
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