Gold edges greater as geopolitical and financial considerations linger

By Anjana Anil

(Reuters) – Gold firmed on Monday after touching a historic milestone final week, as geopolitical tensions, jitters about tariffs escalating commerce frictions, and elevated hopes of rate of interest cuts from the U.S. Federal Reserve continued to gas secure haven demand.

Spot gold rose 0.1% to $2,986.53 an oz, as of 0307 GMT. Bullion rose above the $3,000/oz milestone to notch a file excessive at $3,004.86 on Friday.

U.S. gold futures eased 0.2% to $2,994.60.

“The current rally in gold has been pushed by stagflationary fears,” mentioned Kelvin Wong, senior market analyst, Asia Pacific, at OANDA, including that short-term momentum stays constructive with the subsequent intermediate resistances at $3,016 or $3,030.

There are “no ensures” there is not going to be a recession within the U.S., though there may very well be an adjustment, Treasury Secretary Scott Bessent mentioned on Sunday.

U.S. shopper sentiment plunged to a virtually 2-1/2-year low in March and inflation expectations soared amid worries that President Donald Trump’s sweeping tariffs, which have ignited a commerce battle, would enhance costs and undercut the economic system.

Geopolitical tensions have additionally been persistent, with the U.S. vowing to maintain attacking Yemen’s Houthis till they finish assaults on delivery, and Israeli army strikes killing at the very least 15 Palestinians within the Gaza Strip over the previous 24 hours.

Gold, a hedge in opposition to political dangers and inflation, has gained round 14% thus far in 2025.

Markets now await the Fed’s financial coverage assembly on Wednesday, adopted by Chair Jerome Powell’s speech.

“An improve of inflation forecast within the dot plot and Powell’s trace through the press convention on the financial uncertainty that will come up as a result of…commerce tariff coverage might help a firmer gold value,” Wong mentioned.

Spot silver shed 0.1% to $33.76 an oz, platinum added 0.1% to $994.50, and palladium eased 0.1% to $963.83.

(Reporting by Anjana Anil in Bengaluru; Modifying by Rashmi Aich)