PRECIOUS-Gold edges higher as geopolitical and economic concerns linger

March 17 (Reuters) - Gold firmed on Monday after touching a historic milestone last week, as geopolitical tensions, jitters about tariffs escalating trade frictions, and increased hopes of interest rate cuts from the Federal Reserve continued to fuel safe-haven demand. FUNDAMENTALS * Spot gold XAU= was up 0.2% at $2,989.79 an ounce as of 0058 GMT. Bullion rose above the key $3,000/oz milestone to notch a record high at $3,004.86 on Friday. * U.S. gold futures GCcv1 eased 0.1% to $2,997.30. * The U.S. will keep attacking Yemen's Houthis until they end attacks on shipping, the U.S. defense secretary said on Sunday, as the Iran-aligned group signaled it could escalate in response to deadly U.S. strikes the day before. * Israeli military strikes have killed at least 15 Palestinians in the Gaza Strip over the past 24 hours, the enclave's health ministry said on Sunday, as Arab and U.S. mediators work to shore up a fragile ceasefire between Israel and Hamas. * There are "no guarantees" there will not be a recession in the United States, although there could be an adjustment, Treasury Secretary Scott Bessent said in an interview that aired on Sunday. * 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, which have ignited a trade war, would boost prices and undercut the economy. * Gold is seen as a hedge against political risks and inflation, and has gained around 14% so far in 2025. * Markets now await the Fed's monetary policy meeting on Wednesday. * Non-yielding bullion thrives in a low interest rate environment. * Spot silver XAG= was up 0.1% at $33.82 an ounce, platinum XPT= lost 0.2% to $991.25, and palladium XPD= added 0.1% to $965.91. DATA/EVENTS (GMT) 0001 UK House Price Rightmove MM, House Price Rightmove YY Mar 0200 China Urban Investment (YTD)YY, Retail Sales YY, Unemp Rate Urban Area Feb 1230 US Retail Sales MM Feb (Reporting by Anjana Anil in Bengaluru; Editing by Rashmi Aich) ((Anjana.Anil@thomsonreuters.com;))