Gold holds steady on Monday amid geopolitical tensions and economic concerns

BENGALURU: Gold held steady on Monday (March 17), staying close to last week’s record as investors turned to safe-haven assets amid rising geopolitical tensions, trade concerns, and expectations of US interest rate cuts.

Spot gold rose 0.2 per cent to US$2,989.79 an ounce (oz) (S$3987) at 12:58 AM GMT. Bullion surpassed the US$3,000 mark on Friday, hitting a record high of US$3,004.86. US gold futures slipped 0.1 per cent to US$2,997.30.

According to Reuters, OANDA Asia-Pacific senior market analyst Kelvin Wong said “stagflationary fears” have driven gold’s recent rally, adding that its short-term momentum remains positive, with the next resistance levels at US$3,016 and US$3,030.

The US defence secretary said on Sunday that military strikes on Yemen’s Houthi rebels would continue until they stopped attacking shipping routes, after the Iran-aligned group hinted at further escalation following US air strikes the day before.

Tensions in Gaza have also kept markets on edge. At least 15 Palestinians were killed in Israeli military strikes over the past 24 hours, according to the enclave’s health ministry. Mediation efforts by the US and Arab nations have yet to secure a stable ceasefire between Israel and Hamas.

Beyond geopolitical risks, the US treasury secretary said on Sunday that there were “no guarantees” that the United States would avoid a recession, though an adjustment could be expected.

Consumer sentiment in the US has fallen to its lowest level in nearly two and a half years, with inflation concerns growing amid US President Donald Trump’s tariff policies, which have raised fears of rising prices and slower economic growth.

Gold prices also hit an all-time high in early February with analysts citing the tariff war as the “main driver” behind the surge.

Gold, a traditional hedge against inflation and economic instability, has risen about 14 per cent this year. Non-yielding bullion benefits from low interest rates, and markets are watching the Federal Reserve’s policy meeting on Wednesday.

Other precious metals saw mixed movement. Spot silver rose 0.1 per cent to US$33.82 an ounce, palladium also gained 0.1 per cent to US$965.91, while platinum slipped 0.2 per cent to US$991.25. /TISG

Read also: ‘Gold value never depreciates’ — More Malaysians turn to gold amid turbulent financial times, with investors as young as 18

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