Gold prices extended their gains on Wednesday, supported by lingering geopolitical tensions and renewed trade uncertainty that continue to weigh on investor sentiment. In the Middle East, ongoing unrest has sustained demand for safe-haven assets like gold.

In Eastern Europe, hopes of progress were dampened to a certain extent as Russia could only honour a peace agreement after certain sanctions were lifted. This setback further solidified gold’s short-term bullish outlook.

On a macro level, the looming introduction of US reciprocal tariffs is driving risk aversion. The announcement of tariffs on countries purchasing Venezuelan oil added to the concerns. As a result, economic growth and inflationary risks were further compounded.

Looking forward, investors will closely monitor this week’s GDP and PCE numbers, which could provide crucial clues on the Fed’s next moves. Additionally, speeches from several Fed officials may further shape expectations for the central bank’s next move.