Gold stabilised on Monday after a limited correction as market participants assessed the latest geopolitical and trade tensions.
Potential developments around a cease-fire agreement in Eastern Europe could weigh on gold.
However, an increase in tensions in the Middle East could counterbalance the impact and help support gold prices and a return to the upside.
Additionally, trade policy uncertainty remains a key driver for gold, as tariffs have raised concerns over US economic stability.
The lack of clarity around US trade policy could continue to unsettle markets. Any escalation in trade tariffs could amplify economic risks which would likely benefit the bullion. Meanwhile, attention shifts to this week’s US GDP growth data, which may offer critical insights into the direction of the US economy.
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