Gold holds high position amid economic and geopolitical risks

On Monday, gold is trading below the record level of $3004.91 reached at the end of last week, but still holding high. The metal's price is supported by geopolitical tensions, concerns regarding tariffs, and hopes of a Federal Reserve (Fed) interest rate cut.

According to Kelvin Wong, senior analyst at OANDA, the rise in gold prices is linked to fears of stagflation. Short-term dynamics remains positive, the expert noted.

As Treasury Secretary Scott Bessent said on Sunday, the risk of recession in the US remains despite a possible adjustment of economic conditions. Meanwhile, consumer sentiment fell to a 2.5-year low in March and inflation expectations rose sharply. Investors fear Donald Trump's new tariffs could push up prices and weaken the economy. 

Meanwhile, geopolitical tensions in the Middle East escalated over the weekend.

Markets now await Wednesday's Fed meeting and Jerome Powell's subsequent speech. A possible increase in the inflation forecast and his comments on trade risks could support gold prices, as reported by Reuters.