Gold prices surged to a new record on Tuesday, as growing concerns over an economic slowdown, amplified by yesterdayโs weaker-than-expected U.S. retail sales, strengthened safe-haven demand.
President Donald Trump’s protectionist policies continue to cast a shadow over the US economy, prompting downward revisions in global growth projections.
This fragile outlook has heightened anticipation ahead of Wednesdayโs Federal Reserve meeting.
While rates are expected to remain unchanged, investors will scrutinize the central bankโs updated projections and Fed Chair Jerome Powellโs remarks for clues on future policy moves.
A dovish stance could reinforce goldโs appeal, whereas a more hawkish outlook may lift U.S. yields, capping further gains.
Meanwhile, geopolitical tensions could continue to provide additional support for the precious metal. Escalating tensions in the Middle East may sustain demand for safe-haven assets. However, hopes for positive developments in the Russia-Ukraine conflict could improve investor sentiment and limit goldโs upside.
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