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Spot Gold held in proximity to a fresh record high of $3,004.86 per troy ounce on Monday, underpinned by stagflationary concerns, geopolitical risks and expectations of more rate cuts by the Federal Reserve.

US Treasury Secretary Scott Bessent said over the weekend there were “no guarantees” there would not be a recession, though there could be an adjustment.

The Trump administration’s tariff policies are expected to stoke inflation, pushing Gold up to a series of fresh highs so far this year.

Market focus now sets on the outcome of the Federal Reserve’s two-day policy meeting. The Fed is widely expected to leave its federal funds rate target range intact at 4.25%-4.50% at its March 18th-19th meeting.

Investors will be paying close attention to the press conference with Fed Chair Jerome Powell for clues over the timing of any future interest rate cuts and on the Fed’s set of macroeconomic forecasts.

“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,” Kelvin Wong, senior market analyst, Asia Pacific, at OANDA, was quoted as saying by Reuters.

Geopolitical risks also supported the yellow metal after the US said that it would continue strikes against Yemen’s Houthis until they halt attacks on shipping in the Red Sea.

Spot Gold was last little changed on the day to trade at $2,985.14 per troy ounce.

Gold holds in proximity to a fresh record high of $3,004.86.

According to Wong, short-term momentum for Gold remains positive, with resistance levels at $3,016 and $3,030.

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