Gold remains constrained in the near term as rapidly changing conditions around global trade risks tempered its momentum. Hopes of a de-escalation in trade tensions, particularly between the U.S. and China, have reduced investor demand for the bullion. With several countries, the U.S. is moving forward with trade deals that could affect the appetite for gold.

Market participants' attention is now centred on upcoming U.S. economic data, including job openings, personal consumption expenditures, and non-farm payrolls. These indicators could impact market expectations and the Federal Reserve's policy trajectory. A dovish stance from the Fed could support gold, while a hawkish attitude could further weigh on the asset.

Despite the near-term consolidation, the long-term outlook for gold remains supportive. Structural drivers such as continued central bank reserve diversification and persistent ETF inflows provide a supportive backdrop. However, in the immediate term, in the absence of renewed economic or political instability, gold prices are likely to remain capped within a range.

Sources: MENA FN