(Reuters) - Gold was unchanged on Monday after touching a historic milestone last week, driven by geopolitical tensions, jitters about escalating tariffs and hopes of further U.S. interest rate cuts.

Spot gold was flat at $2,983.09 an ounce, as of 0518 GMT. Bullion rose above the $3,000/oz milestone to notch a record high of $3,004.86 on Friday.

U.S. gold futures eased 0.3% to $2,992.30.

"The recent rally in gold has been driven by stagflationary fears," said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA, adding that the metal's short-term momentum remains positive, with the next intermediate resistances at $3,016 or $3,030.

There are "no guarantees" there will not be a recession in the U.S., although there could be an adjustment, Treasury Secretary Scott Bessent said on Sunday.

Adding to the pain, U.S. consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations soared amid worries that President Donald Trump's sweeping tariffs would boost prices and undercut the economy.

Gold, a hedge against economic uncertainties and inflation, has risen about 14% so far in 2025.

Meanwhile, the U.S. vowed to keep attacking Yemen's Houthis until they end attacks on shipping, while Israeli military strikes killed at least 15 Palestinians in the Gaza Strip over the past 24 hours.

However, geopolitical woes saw some respite after Trump said he plans to speak to Russian President Putin on Tuesday and discuss ending the war in Ukraine.

Markets now await the Federal Reserve's monetary policy meeting on Wednesday, followed by Chair Jerome Powell's speech.

"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," Wong said.

Spot silver shed 0.3% to $33.67 an ounce, platinum added 0.4% to $996.80, and palladium firmed 0.1% to $965.70.