PRECIOUS-Gold edges higher on safe-haven demand, Fed optimism

March 24 (Reuters) - Gold edged higher on Monday as concerns over U.S. President Donald Trump's impending reciprocal tariffs and the potential for interest rate cuts by the Federal Reserve this year supported bullion's safe-haven appeal.

FUNDAMENTALS

* Spot gold was up 0.1% at $3,025.12 an ounce, as of 0005 GMT. U.S. gold futures rose 0.3% to $3,030.70.

* Gold reached a record high of $3,057.21 per ounce last Thursday as trade tensions fuelled safe-haven demand. Zero-yield bullion is seen as a hedge against geopolitical turmoil, economic uncertainties, and inflation.

* Tariffs will remain in the spotlight as Trump announced a wave of reciprocal tariffs to take effect on April 2, which is likely to fuel inflation and hinder economic growth.

* Last week, the Fed held its benchmark rate steady in the 4.25%-4.50% range, as expected. Policymakers see the U.S. central bank delivering two quarter-percentage-point cuts by the year-end.

* However, New York Federal Reserve President John Williams said on Friday the U.S. central bank's monetary policy is in the right place given the myriad uncertainties facing the economy, noting that there's no urgency to make any changes to interest rates.

* On physical front, discounts offered on gold in India touched a more than eight-month high last week as demand slumped after spot prices surged past record highs.

* Spot silver gained 0.1% to $33.06 an ounce, platinum firmed 0.7% to $981.25 and palladium rose 0.5% to $962.54.

(Reporting by Anushree Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips)