- Short-term momentum remains positive for gold, analyst says
- No guarantees that there will not be recession in U.S.- Bessent
- Markets await Fed's policy meeting, Powell speech, on Wed
March 17 (Reuters) - Gold prices, on Monday, stayed just shy of the $3,000-per-ounce milestone scaled in the previous session, as the escalating U.S.-driven tariff war now also threatens economic growth, adding to other geopolitical tensions.
Spot gold had firmed 0.1% to $2,988.68 an ounce as of 0715 GMT. It hit a record high of $3,004.86 on Friday.
U.S. gold futures eased 0.3% to $2,992.30.
Fears that President Donald Trump's sweeping tariffs would boost prices and undercut the economy came home to roost as recent data showed consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations soared.
On fears of a recession, Treasury Secretary Scott Bessent said on Sunday there are "no guarantees" there will not be one, although there could be an adjustment.
"The recent rally in gold has been driven by stagflationary fears," said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.
He said the bullion's short-term momentum remains positive, with the next intermediate resistances at $3,016 or $3,030.
Gold, a hedge against economic uncertainties and inflation, has risen about 14% so far in 2025.
Meanwhile, the U.S. vowed to keep attacking Yemen's Houthis until they end attacks on shipping, while Israeli military strikes killed at least 15 Palestinians in the Gaza Strip over the past 24 hours.
However, geopolitical woes saw some respite after Trump said he plans to speak to Russian President Putin on Tuesday and discuss ending the war in Ukraine.
Markets now await the Federal Reserve'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 added 0.1% to $33.81 an ounce, platinum rose 0.4% to $997.04, and palladium gained 0.4% to $969.22.
Reporting by Anjana Anil in Bengaluru; Editing by Rashmi Aich, Sonia Cheema and Savio D'Souza
Source: Reuters