[BENGALURU] Gold firmed on Monday (Mar 17) 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 US Federal Reserve continued to fuel safe-haven demand.
Spot gold was up 0.2 per cent at US$2,989.79 an ounce (oz) as at 0058 GMT. Bullion rose above the key US$3,000/oz milestone to notch a record high at US$3,004.86 on Friday.
US gold futures eased 0.1 per cent to US$2,997.30.
The US will keep attacking Yemen’s Houthis until they end attacks on shipping, the US defence secretary said on Sunday, as the Iran-aligned group signalled it could escalate in response to deadly US strikes the day before.
Israeli military strikes have killed at least 15 Palestinians in the Gaza Strip over the past 24 hours, the enclave’s health ministry said on Sunday, as Arab and US mediators work to shore up a fragile ceasefire between Israel and Hamas.
There are “no guarantees” there will not be a recession in the United States, although there could be an adjustment, Treasury Secretary Scott Bessent said on Sunday.
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US consumer sentiment plunged to a nearly 2½-year low in March and inflation expectations soared amid worries that US President Donald Trump’s sweeping tariffs, which have ignited a trade war, would boost prices and undercut the economy.
Gold is seen as a hedge against political risks and inflation, and has gained around 14 per cent so far in 2025.
Markets now await the Fed’s monetary policy meeting on Wednesday.
Non-yielding bullion thrives in a low interest rate environment.
Spot silver was up 0.1 per cent at US$33.82 an ounce, platinum lost 0.2 per cent to US$991.25, and palladium added 0.1 per cent to US$965.91. REUTERS
