By Maria Agustina Patti

Gold prices started the month with a rebound, stabilizing to a certain extent, supported by a weaker US dollar and overall uncertainty. However, the short-term outlook could see the bullion record some volatility as geopolitical and economic factors affect sentiment.

Additional tariffs on Chinese goods could potentially intensify trade tensions and may drive investors toward safe-haven assets. Conversely, a potential rollback of tariff threats on Mexico and Canada could lift market confidence and shift demand toward riskier investments.

Peace talks in Europe add to gold’s uncertain trajectory. After the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky, optimism could be revived after Zelensky’s meeting with European leaders, fueling hopes of de-escalation.

Meanwhile, upcoming key economic indicators, including PMI data and Nonfarm Payrolls, could also play a pivotal role in shaping market sentiment. Strong US economic data could reinforce the Fed’s hawkish stance and weigh on gold prices. Weaker-than-expected results might support the precious metal.

Patti Financial Markets Strategist Consultant to Exness