Gold prices stabilized following a decline as traders took profits after the market hit a record high. However, the short-term outlook remains bullish amid ongoing trade tensions. US President Donald Trump's remarks expressing his intentions to apply tariffs on Mexico and Canada, and his subsequent signing of an executive order to examine potential copper tariffs, sparked a risk-off sentiment among market participants, increasing the demand for safe-haven assets, which could support gold.

Further uncertainty stems from potential retaliatory measures by China, Europe, and Canada, which could weigh on global sentiment and economic growth. Such measures could potentially impact consumer sentiment, which has exhibited signs of a slowdown. As a result, US economic growth could be at risk, potentially prompting the Federal Reserve to adopt a more dovish stance, which would benefit non-yielding assets like gold.

Looking forward, investors will focus on upcoming GDP growth and Personal Consumer Expenditures data. Weak figures could bolster bullion, while stronger results may trigger selling pressure. In addition, market participants will also closely monitor geopolitical developments such as the ongoing Ukraine-Russia conflict, as it remains a key risk factor for market sentiment.