Gold (XAU/USD) remains resilient near its daily high during the first half of the European session, continuing its recovery from the $3,200 area, which marked a two-week low last Thursday. The ongoing Russia-Ukraine war, coupled with the escalating conflict in the Middle East, has kept geopolitical risks at the forefront, driving safe-haven demand for gold. Additionally, uncertainty surrounding U.S. President Donald Trump’s tariff policies continues to weigh on investor sentiment, further supporting the precious metal.
The initial market response to the stronger-than-expected U.S. jobs report released on Friday was short-lived, as broader economic uncertainty persists, fueled by concerns over Trump’s tariff plans. Moreover, expectations for the Federal Reserve’s potential rate cuts continue to pressure the U.S. dollar (USD), which remains below a multi-week high, providing additional support for gold. Despite the favorable conditions for gold, XAU/USD bulls remain cautious ahead of the upcoming two-day Federal Open Market Committee (FOMC) meeting, which begins on Tuesday.
