BY ANJANA ANIL
BENGALURU- Gold firmed on Monday 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 rose 0.1 percent to $2,986.53 an ounce. Bullion rose above the $3,000/oz milestone to notch a record high at $3,004.86 on Friday. US gold futures eased 0.2 percent to $2,994.60.
“The recent rally in gold has been driven by stagflationary fears,” said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA, adding that short-term momentum remains positive with the next intermediate resistances at $3,016 or $3,030.
There are “no guarantees” there will not be a recession in the US although there could be an adjustment, Treasury Secretary Scott Bessent said on Sunday.
US consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations soared amid worries that President Donald Trump’s sweeping tariffs, which have ignited a trade war, would boost prices and undercut the economy.
