Gold steadied around $3,020 per ounce on Monday, buoyed by safe-haven demand amid rising economic and geopolitical uncertainties, as well as expectations that the U.S. Federal Reserve could soon implement rate cuts.
Gold prices remain above $3,000 per ounce
President Donald Trump’s announcement of new reciprocal tariffs, set to take effect on April 2, has created some market jitters, although he has hinted there may be flexibility in the plan, which is contributing to uncertainty in global trade relations.
Meanwhile, tensions in the Middle East escalated, with Israel resuming airstrikes targeting Hamas in the Gaza Strip, adding to investor concerns over regional instability. The ongoing conflict has further increased demand for assets like gold, traditionally seen as a store of value in times of crisis.
Tariffs and Ukraine war under spotlight
In parallel, U.S. delegates are scheduled to meet with Russian officials later today to discuss a potential ceasefire in the Black Sea, aiming for broader peace efforts in the Ukraine war. This comes after Sunday’s talks with Ukrainian diplomats, signaling efforts to de-escalate the conflict, though the situation remains fragile.
On the monetary policy front, the Federal Reserve kept its key interest rate steady last week but indicated the possibility of two rate cuts later this year. This dovish outlook has further supported gold, which tends to benefit from lower interest rates as investors seek alternative stores of value. With global uncertainties continuing to shape market sentiment, gold’s long-term bullish outlook remains intact.
