Gold Prices Hold Near Record Highs
Gold prices held close to the historic $3,000 mark on Monday, as economic anxiety gripped markets. Spot gold stood at $2,988.68 an ounce by 07:15 GMT. This followed Friday’s record of $3,004.86.
Gold prices have surged roughly 14% in 2025. Investors are rushing to safe-haven assets amid rising recession fears and global instability. U.S. gold futures slipped slightly by 0.3%, down to $2,992.30.
Trump’s Tariffs Stoke Stagflation Fears
The surge in gold prices is largely fueled by concern over President Donald Trump’s expanding trade war. New tariffs have sparked inflationary pressure and economic slowdown fears.
Recent data revealed a sharp drop in consumer sentiment, falling to a 2.5-year low in March. Inflation expectations also surged, putting further pressure on the Federal Reserve.
“Stagflationary concerns are lifting gold prices,” said Kelvin Wong, senior market analyst at OANDA. He expects gold to test intermediate resistance at $3,016 or $3,030.
Gold Prices Benefit From Market Uncertainty
Gold prices traditionally perform well during uncertain times. With inflation and geopolitical tension rising simultaneously, many investors view bullion as a hedge.
The ongoing conflict in the Middle East continues to drive demand for safe-haven assets. U.S. military action in Yemen and Israeli strikes in Gaza have heightened tensions.
Meanwhile, any relief may come from diplomacy. Trump announced plans to speak with Russian President Vladimir Putin about the war in Ukraine. However, no ceasefire is expected in the short term.
All Eyes on the Federal Reserve Meeting
Markets are watching the Federal Reserve’s upcoming policy meeting on Wednesday. Fed Chair Jerome Powell’s speech is expected to provide key insight into future rate moves.
“An upgraded inflation forecast in the Fed’s dot plot, along with concerns over Trump’s tariff impact, may boost gold prices,” Wong added.
Higher inflation with slowing growth could mean a longer path to rate cuts—bullish for gold prices in the short term.
Other Precious Metals Follow Gold’s Lead
While gold prices dominate headlines, other precious metals are also rising. Spot silver edged up 0.1% to $33.81 per ounce.
Platinum gained 0.4% to $997.04, while palladium matched that move to trade at $969.22. These metals often mirror gold prices during times of heightened market uncertainty.
Forecast: Gold Prices Remain in Bullish Territory
Despite minor pullbacks, analysts maintain a bullish stance on gold prices. Market sentiment suggests that gold may continue its upward trajectory if economic and geopolitical risks persist.
If Powell signals caution or suggests delayed rate cuts, gold prices could climb even further. Technical analysts see $3,030 as a critical resistance level.
For now, gold prices appear well supported by a fragile global outlook, steady demand, and the potential for more inflation surprises.