Gold prices remained stable on Monday, hovering near the $3,000 level that was surpassed last week. Investors are closely watching trade tariff developments and the U.S. Federal Reserve’s upcoming policy meeting for further market direction.
Market Overview
Spot gold edged up 0.4% to $2,997.51 an ounce, after reaching a record high of $3,004.86 on Friday. Meanwhile, U.S. gold futures rose 0.2% to $3,005.60.
Traders are awaiting the Federal Reserve’s new economic projections this week, which will offer insight into how central bankers assess the economic effects of President Donald Trump’s policies. These policies have added uncertainty to an otherwise stable economic outlook.
Treasury Secretary Scott Bessent warned on Sunday that while a U.S. recession is not guaranteed, some economic adjustment may be necessary.
David Meger, director of metals trading at High Ridge Futures, noted, “I expect some consolidation in gold prices… Right now, the market is in a ‘wait-and-see’ mode ahead of the Fed’s decision.”
Interest Rates and Economic Signals
Markets widely anticipate that the Federal Reserve will keep interest rates unchanged on Wednesday, with a potential rate cut expected in June.
Gold, which does not yield interest, tends to perform well during economic uncertainty and in lower interest rate environments.
Recent data indicated that U.S. retail sales rebounded in February but at a slower pace than expected. Economic growth remains moderate, with trade tariffs and federal worker layoffs weighing on consumer sentiment.
Analysts at Heraeus Metals stated, “Should economic data continue to soften and the global tariff war escalate, gold will continue to benefit.”
Other Market Movements
- Spot silver remained unchanged at $33.78 an ounce.
- Palladium inched up 0.2% to $967.27.
- Platinum gained 1% to reach $1,002.60.
Political Developments
President Trump announced plans to speak with Russian President Vladimir Putin on Tuesday regarding efforts to end the war in Ukraine.
With investors closely monitoring geopolitical developments, the Fed’s decision and economic data in the coming days will play a key role in shaping gold’s trajectory.