*

Short-term momentum remains positive for gold, analyst

says

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No guarantees that there will not be recession in U.S.-

Bessent

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Markets await Fed's policy meeting, Powell speech, on Wed

(Updates with mid-session trading)

By Anjana Anil

March 17 (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.